C O U R A G E · P O W E R · P R I D E
A N N U A L R E P O R T A N D F I N A N C I A L S TAT E M E N T S 2 0 2 4
L I O N T R U S T A S S E T M A N A G E M E N T P L C
OUR PURPOSE
To help clients enjoy a better financial future through the power of active management and distinct investment processes.
INSIDE THIS REPORT
Financial highlights | Financial Statements - Group and Company | |
Highlights and Key performance measures | 4 | Consolidated Statement of Comprehensive Income |
Consolidated Balance Sheet | ||
Strategic Report | Consolidated Cash Flow Statement | |
Chair's Statement | 12 | Consolidated Statement of Changes in Equity |
Chief Executive Officer's report | 14 | Notes to the Financial Statements |
Our Strategy | 16 | Company Financial Statements |
Our Business Model | 23 | Company Notes to the Financial Statements |
Financial review | 28 | Independent auditor's report to the members of Liontrust |
Principal Risks and Mitigations | 38 | Asset Management PLC |
Shareholder Information | ||
Our People | 54 | Glossary |
Responsible Capitalism | 62 | |
Governance | ||
Board of Directors | 70 | |
Risk management and internal controls report | 75 | |
Corporate Governance report | 78 | |
Directors' report | 89 | |
Directors' responsibility statement | 94 | |
Nomination Committee report | 96 | |
Audit & Risk Committee report | 102 | |
Remuneration report | 106 |
148
149
150
151
152
186
189
194
201
202
2 LIONTRUST ASSET MANAGEMENT PLC ANNUAL REPORT AND FINANCIAL STATEMENTS 2024
LIONTRUST ASSET MANAGEMENT PLC ANNUAL REPORT AND FINANCIAL STATEMENTS 2024 | 3 | |
FINANCIAL HIGHLIGHTS
HIGHLIGHTS
ASSETS UNDER MANAGEMENT AND ADVICE* | NET FLOWS* | |
31 March | 31 March | |
2024 | 12% | 2024 |
£27,822 million | £(6,083) million | |
31 March | 31 March | |
2023 | 2023 | |
£31,430 million | £(4,841) million |
GROSS PROFIT | PROFIT/ (LOSS) BEFORE TAX | ADJUSTED PROFIT |
BEFORE TAX* | ||
19% | 101% | 23% |
£229.8m | £186.1m | £49.3m | £(0.6)m | £87.1m | £67.4m |
2023 | 2024 | 2023 | 2024 | 2023 | 2024 |
DILUTED EARNINGS | ADJUSTED DILUTED | TOTAL DIVIDEND |
PER SHARE | EARNINGS PER | PER SHARE |
SHARE* | ||
109% | 28% | 0% |
61.21 pence | (5.46) pence | 109.78 pence | 79.16 pence | 72 pence | 72 pence |
2023 | 2024 | 2023 | 2024 | 2023 | 2024 |
*These are Alternative Performance Measures. The disclosure, definition and nature of adjustments to GAAP measures to the disclosed APMs is a judgement made by management and is a matter referred to the Audit & Risk Committee for approval prior to issuing the financial statements. See Page 32 for further details.
4 LIONTRUST ASSET MANAGEMENT PLC ANNUAL REPORT AND FINANCIAL STATEMENTS 2024
FINANCIAL HIGHLIGHTS
ASSETS UNDER MANAGEMENT AND ADVICE
On 31 March 2024, our AuMA stood at £27,822 million and were broken down by type and investment process as follows:
Institutional | International | |||||
Accounts & | Investment | UK Retail | Alternative | Funds & | ||
Total | Funds | Trusts | Funds & MPS | Funds | Accounts | |
Process | (£m) | (£m) | (£m) | (£m) | (£m) | (£m) |
Sustainable Investment | 10,433 | 323 | - | 9,624 | - | 486 |
Economic Advantage | 6,571 | 450 | - | 5,998 | - | 123 |
Multi-Asset | 4,344 | - | - | 4,220 | 124 | - |
Global Innovation | 827 | - | - | 827 | - | - |
Cashflow Solution | 2,184 | 556 | - | 1,404 | 112 | 112 |
Global Fundamental*1 | 3,267 | 412 | 1,135 | 1,706 | - | 14 |
Global Fixed Income | 196 | - | - | 36 | - | 160 |
Total | 27,822 | 1,741 | 1,135 | 23,815 | 236 | 895 |
1The Global Fundamental Global Equity Funds moved to Mark Hawtin's new Global Equity Team in May 2024.
NET FLOWS
The net outflows over the Financial Year were £6,083 million (2023: £4,841 million). A reconciliation of fund flows and AuMA over the Financial Year is as follows:
Institutional | International | |||||
Accounts & | Investment | UK Retail | Alternative | Funds & | ||
Total | Funds | Trusts | Funds & MPS | Funds | Accounts | |
£m | £m | £m | £m | £m | £m | |
Opening AuMA - 1 April 2023 | 31,430 | 2,394 | 1,139 | 25,721 | 1,084 | 1,092 |
Net flows | (6,083) | (925) | (92) | (3,999) | (821) | (246) |
Market and Investment performance | 2,475 | 272 | 88 | 2,093 | (27) | 49 |
Closing AuMA - 31 Mar 2024 | 27,822 | 1,741 | 1,135 | 23,815 | 236 | 895 |
LIONTRUST ASSET MANAGEMENT PLC ANNUAL REPORT AND FINANCIAL STATEMENTS 2024 | 5 |
FINANCIAL HIGHLIGHTS
KEY PERFORMANCE MEASURES
Fund management ability and investment performance
The strength of Liontrust's fund managers and investment processes is shown by the fact that over the period from launch or fund manager appointment to the end of each of the last three financial years, on an AuMA weighted basis, we have had over 60% or more of our actively managed UK retail AuMA in first quartile funds (see Figure 1).
AuMA*
Our AuMA has decreased by 12% from 31 March 2023 to 31 March 2024 and decreased by 17% from 31 March 2022 to 31 March 2024, reflecting market performance and net flows (see figure 3).
Figure 3 - AuMA by investor type £'million
Figure 1 - AuMA weighted quartile ranking since launch or manager inception (covers 75% of AuMA).
100% | ||
90% | ||
80% | ||
70% | ||
60% | ||
50% | ||
40% | ||
30% | ||
20% | ||
10% | ||
0% | ||
FY22 | FY23 | FY24 |
40,000 | ||
35,000 | ||
30,000 | ||
25,000 | ||
20,000 | ||
15,000 | ||
10,000 | ||
5,000 | ||
0 | ||
FY22 | FY23 | FY24 |
UK Retail Funds & MPS (£'m) | Alternative Funds (£'m) | |
Institutional Accounts & Funds (£'m) | International Funds & Accounts (£'m) | |
Investment trusts (£'m) |
First Quartile | Third Quartile | |
Second Quartile | Fourth Quartile | |
1net of fees and income reinvested.
Net flows*
Net flows in the year falling to £(6,083) million from +£2,488 million two years ago and from £(4,841) million last year.
Adjusted profit before tax*
Our adjusted profit before tax has decreased by 23% from 31 March 2023 to 31 March 2024 and by 30% from 31 March 2022 to 31 March 2024.
Figure 4 - Adjusted profit before tax £'million
100
Figure 2 - Net flows £'million | ||
£4,000 | 80 | |
£3,000 | ||
£2,000 | 60 | |
£1,000 | 40 | |
£0 | ||
(£1,000) | 20 | |
(£2,000) | ||
(£3,000) | 0 | |
(£4,000) | ||
(£5,000) | ||
(£6,000) | ||
(£7,000) | ||
FY22 | FY23 | FY24 |
FY22 | FY23 | FY24 |
*These are Alternative Performance Measures. The disclosure, definition and nature of adjustments to GAAP measures to the disclosed APMs is a judgement made by management and is a matter referred to the Audit & Risk Committee for approval prior to issuing the financial statements. See Page 32 for further details.
6 LIONTRUST ASSET MANAGEMENT PLC ANNUAL REPORT AND FINANCIAL STATEMENTS 2024
SPLIT OF AUMA
BY CLIENT TYPE
Financial Adviser 37%
Wealth Manager 17%
Life & Pensions 15%
Institutional 10%
D2C/Execution only 8%
Platform 8%
Fund Manager 4%
Other 2%
FINANCIAL HIGHLIGHTS
BY PRODUCT TYPE
UK Retail Funds & MPS 86%
£27.8bn
AuMA
Instl. Accounts & Funds 6%
Investment Trusts 4%
Int. Funds & Accounts 3%
Alternative Funds 1%
FUND PERFORMANCE
Since inception /
1 year
8.9% | 8.7% | |||
20.9% | (4) | (8) | ||
(9) | 17.8% | 35.6% | 17.4% | |
(20) | (6) | 47.8% | (8) | |
20.9% | (7) | |||
(9) | 19.6% | |||
(9) | ||||
14.0% | 44.4% | 26.7% | ||
(6) | (20) | (6) | 15.2% | |
(7) | ||||
13.3% | ||||
(6) | 23.9% | 54.3% | ||
44.2% | (11) | (25) | ||
(19) | 28.9% | |||
24.5% | ||||
(13) | (13) | 13.0% | ||
(6) | ||||
2020 | 2021 | 2022 | 2023 | 2024 |
3 years
7.9% | 9.3% | |||
21.1% | (3) | (4) | 24.4% | |
26.7% | ||||
(8) | 13.2% | 14.0% | ||
(5) | (12) | (11) | ||
(6) | ||||
15.8% | ||||
(6) | 26.3% | |||
27.9% | 26.7% | |||
(10) | ||||
(12) | (12) | |||
42.2% | ||||
(19) | ||||
24.4% | ||||
63.2% | (11) | |||
(24) | 52.6% | 48.8% | 13.3% | |
(20) | (21) | (6) | ||
17.8% | 24.4% | |||
(11) | ||||
(8) | ||||
2020 | 2021 | 2022 | 2023 | 2024 |
5 years
11.8% | 8.1% | 13.2% | ||
(3) | 15.8% | 16.3% | ||
(4) | 10.8% | (5) | (6) | (11) |
20.6% | (4) | 5.3% (2) | ||
8.1% | ||||
(4) | (3) | 23.7% | 26.3% | 23.3% |
(10) | (10) | |||
(9) | ||||
17.6% | ||||
(6) | 13.2% | |||
23.3% | ||||
(5) | (10) | |||
73.0% | ||||
(27) | 57.9% | |||
50.0% | (22) | 44.7% | ||
(17) | 37.2% | |||
(17) | ||||
(11) | ||||
2020 | 2021 | 2022 | 2023 | 2024 |
manager inception
13.6% | 6.8% (3) | 8.9% | 11.1% | 10.6% |
(6) | (4) | (5) | (5) | |
15.9% | 13.3% | 14.9% | ||
18.2% | (4) | (6) | ||
28.9% | (7) | |||
(8) | ||||
22.2% | (13) | |||
22.7% | ||||
15.9% | (10) | (10) | 29.8% | |
(7) | 17.8% | (14) | ||
(8) | ||||
52.3% | 54.5% | 55.6% | ||
(23) | (24) | (25) | 42.2% | 44.7% |
(19) | (21) | |||
2020 | 2021 | 2022 | 2023 | 2024 |
1st quartile | 2nd quartile | 3rd quartile | 4th quartile |
Source: Liontrust, FE Analytics,31.03.24. Share classes are total return, net of fees, income reinvested. Quartiles as at 31.03.24, generated on 17.04.24. Details of the benchmarks can be found on the fund pages of the Liontrust website. Single strategy Liontrust funds both UK and offshore funds versus benchmark and those given an FE Analytics benchmark.
LIONTRUST ASSET MANAGEMENT PLC ANNUAL REPORT AND FINANCIAL STATEMENTS 2024 | 7 |
FINANCIAL HIGHLIGHTS
Fund Performance (Quartile ranking)
Detailed quartile rankings by fund over one, three and five years and since launch date or fund manager appointment are shown in the table below:
Quartile ranking | |||||||||||||||||||||||||||||||||||||
- Since Launch/ | Quartile | Quartile | Quartile | Launch Date/ | |||||||||||||||||||||||||||||||||
Manager | ranking | ranking | ranking | Manager | |||||||||||||||||||||||||||||||||
Appointed | - 5 year | - 3 year | - 1 year | Appointed | |||||||||||||||||||||||||||||||||
ECONOMIC ADVANTAGE FUNDS | |||||||||||||||||||||||||||||||||||||
Liontrust UK Growth Fund | 1 | 1 | 1 | 3 | 25/03/2009 | ||||||||||||||||||||||||||||||||
Liontrust Special Situations Fund | 1 | 2 | 3 | 4 | 10/11/2005 | ||||||||||||||||||||||||||||||||
Liontrust UK Smaller Companies Fund | 1 | 1 | 2 | 3 | 08/01/1998 | ||||||||||||||||||||||||||||||||
Liontrust UK Micro Cap Fund | 1 | 1 | 1 | 2 | 09/03/2016 | ||||||||||||||||||||||||||||||||
SUSTAINABLE FUTURE FUNDS | |||||||||||||||||||||||||||||||||||||
Liontrust SF Monthly Income Bond Fund | 1 | 1 | 2 | 1 | 12/07/2010 | ||||||||||||||||||||||||||||||||
Liontrust SF Managed Growth Fund | 2 | 1 | 2 | 1 | 19/02/2001 | ||||||||||||||||||||||||||||||||
Liontrust SF Corporate Bond Fund | 1 | 2 | 2 | 1 | 20/08/2012 | ||||||||||||||||||||||||||||||||
Liontrust SF Cautious Managed Fund | 2 | 3 | 4 | 3 | 23/07/2014 | ||||||||||||||||||||||||||||||||
Liontrust SF Defensive Managed Fund | 1 | 3 | 4 | 2 | 23/07/2014 | ||||||||||||||||||||||||||||||||
Liontrust SF European Growth Fund | 3 | 4 | 4 | 4 | 19/02/2001 | ||||||||||||||||||||||||||||||||
Liontrust SF Global Growth Fund | 3 | 2 | 3 | 2 | 19/02/2001 | ||||||||||||||||||||||||||||||||
Liontrust SF Managed Fund | 1 | 1 | 3 | 1 | 19/02/2001 | ||||||||||||||||||||||||||||||||
Liontrust UK Ethical Fund | 3 | 4 | 4 | 3 | 01/12/2000 | ||||||||||||||||||||||||||||||||
Liontrust SF UK Growth Fund | 3 | 4 | 4 | 2 | 19/02/2001 | ||||||||||||||||||||||||||||||||
Liontrust GF SF US Growth Fund | 2 | - | - | - - | - - | 07/07/2023 | |||||||||||||||||||||||||||||||
GLOBAL INNOVATION FUNDS | |||||||||||||||||||||||||||||||||||||
Liontrust Global Dividend Fund | 2 | 1 | 2 | 1 | 20/12/2012 | ||||||||||||||||||||||||||||||||
Liontrust Global Innovation Fund | 1 | 2 | 4 | 1 | 31/12/2001 | ||||||||||||||||||||||||||||||||
Liontrust Global Technology Fund | 2 | 2 | 1 | 1 | 15/12/2015 | ||||||||||||||||||||||||||||||||
GLOBAL FUNDAMENTAL GLOBAL EQUITY FUNDS1 | |||||||||||||||||||||||||||||||||||||
Liontrust Balanced Fund | 1 | 1 | 1 | 1 | 31/12/1998 | ||||||||||||||||||||||||||||||||
Liontrust China Fund | 4 | 3 | 4 | 3 | 31/12/2004 | ||||||||||||||||||||||||||||||||
Liontrust Emerging Market Fund | 3 | 4 | 3 | 1 | 30/09/2008 | ||||||||||||||||||||||||||||||||
Liontrust Global Smaller Companies Fund | 1 | 3 | 3 | 1 | 01/07/2016 | ||||||||||||||||||||||||||||||||
Liontrust Global Alpha Fund | 1 | 3 | 4 | 2 | 31/12/2001 | ||||||||||||||||||||||||||||||||
Liontrust India Fund | 4 | 2 | 1 | 1 | 29/12/2006 | ||||||||||||||||||||||||||||||||
Liontrust Japan Equity Fund | 2 | 1 | 2 | 1 | 22/06/2015 | ||||||||||||||||||||||||||||||||
Liontrust Latin America Fund | 3 | 4 | 4 | 3 | 03/12/2007 | ||||||||||||||||||||||||||||||||
Liontrust US Opportunities Fund | 1 | 3 | 3 | 1 | 31/12/2002 | ||||||||||||||||||||||||||||||||
Liontrust GF US Equity Fund | 2 | 1 | 3 | 1 | 26/06/2014 | ||||||||||||||||||||||||||||||||
Liontrust GF International Equity Fund | 4 | - | - | 4 | 4 | 17/12/2019 | |||||||||||||||||||||||||||||||
8 LIONTRUST ASSET MANAGEMENT PLC ANNUAL REPORT AND FINANCIAL STATEMENTS 2024
FINANCIAL HIGHLIGHTS
Quartile ranking | |||||||||||||||||||||||||||||||||||||||
- Since Launch/ | Quartile | Quartile | Quartile | Launch Date/ | |||||||||||||||||||||||||||||||||||
Manager | ranking | ranking | ranking | Manager | |||||||||||||||||||||||||||||||||||
Appointed | - 5 year | - 3 year | - 1 year | Appointed | |||||||||||||||||||||||||||||||||||
CASHFLOW SOLUTION FUNDS | |||||||||||||||||||||||||||||||||||||||
Liontrust European Dynamic Fund | 1 | 1 | 1 | 1 | 15/11/2006 | ||||||||||||||||||||||||||||||||||
GLOBAL FIXED INCOME FUNDS | |||||||||||||||||||||||||||||||||||||||
Liontrust Strategic Bond Fund | 3 | 3 | 3 | 3 | 08/05/2018 | ||||||||||||||||||||||||||||||||||
GLOBAL FUNDAMENTAL TEAM FUNDS | |||||||||||||||||||||||||||||||||||||||
Liontrust UK Equity Fund | 1 | 3 | 2 | 1 | 27/03/2003 | ||||||||||||||||||||||||||||||||||
Liontrust UK Focus Fund | 1 | 4 | 3 | 1 | 29/09/2003 | ||||||||||||||||||||||||||||||||||
Liontrust Income Fund | 1 | 1 | 1 | 1 | 31/12/2002 | ||||||||||||||||||||||||||||||||||
Liontrust GF UK Equity Fund | 4 | 3 | 2 | 1 | 03/03/2014 | ||||||||||||||||||||||||||||||||||
Edinburgh Investment Trust Plc | 1 | - - | 1 | 1 | 27/03/2020 | ||||||||||||||||||||||||||||||||||
1The Global Fundamental Global Equity Funds moved to Mark Hawtin's new Global Equity Team in May 2024.
Source: Financial Express to 31 March 2024 as at 4 April 2024, bid‐bid, total return, net of fees, based on primary share classes. Past performance is not a guide to future performance, investments can result in total loss of capital. The above funds are all UK authorised unit trusts, OEICs, Irish authorised OEICs (primary share class) or UK listed investment trusts. Liontrust Russia Fund is not included as it is currently suspended and in an IA sector that is not rankable (e.g. Specialist) so it would not be a fair comparison to make. Liontrust GF Tortoise Fund is not included as it is not in an IA sector. Edinburgh Investment Trust Plc uses the IT UK Equity Income sector.
LIONTRUST ASSET MANAGEMENT PLC ANNUAL REPORT AND FINANCIAL STATEMENTS 2024 | 9 |