Liontrust AUM up 20% to £19.3bn
Architas multi-manager deal progressing
Liontrust Asset Management saw strong inflows in the second quarter of the year, adding £971m to its books and bringing total assets under management to £19.3bn.
The firm's trading update for April to June said its assets under management and advice (AuMA) had increased 20% since the start of the current financial year.
The fund manager's trading update and year-end results released this morning (8 July) followed the announcement of the group's plan to buy Architas Multi-Manager and Architas Advisory Services from parent-company Axa on 1 July. The deal should add an additional £5.6bn of AuMA to Liontrust when completed.
Liontrust acquires Architas multi-manager business in £75m deal
The company's full-year results revealed 'adjusted profit before tax' of £38.1m compared to £30.1m in 2019, an increase of 26%.
However, the full-year results also stated 'profit before tax' was £16.5m, a decrease of 26% on 2019 when it stood at £22.2m.
The results explained: "Costs relating to the acquisition and re-organisation of Neptune were £9.7m including acquisition-related costs of £1.9m, severance compensation and a £3.2m charge in relation to the termination of a marketing contract that was not required."
Commenting on the second quarter trading update, Liontrust chief executive John Ions said: "Liontrust has had a very strong start to the new financial year, with a record quarter of positive net flows of £971m.
"Maintaining the momentum of the business during the pandemic is testament to the talent and dedication of everyone at Liontrust, the excellence of our investment teams, the power of the brand and the strength of our sales and marketing capability."
He added: "The loyalty of clients has been engendered by our long-term fund performance, the clear articulation of robust investment processes and first-class service. The crisis has reiterated the importance of these at a time when clients have been seeking reassurance and confidence from those in whom they entrust their savings."
Ions said the business intended to expand its range of investment products on offer to financial advisers and their clients through the Architas UK investment business acquisition.
"Their multi-asset multi-manager funds will build on our existing Multi-Asset portfolios, Sustainable Managed and equity income funds. This will give us a significant multi-asset multi-management proposition with £6.6bn in AuMA, enabling us to meet the growing demand from financial advisers and expanding our distribution."
Ions added he was proud of the way Liontrust staff had continued to operate effectively during the Covid-19 crisis.
"Our assets are the people who work at Liontrust and it is because of them that I have great confidence in our continued growth," he added.
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