Specialist fund manager Liontrust Asset Management (LIO) attracted record inflows of £2.7 billion, a rise of 52% for the year-ended 31 March 2020, leading to a 26% increase in revenues and a 22% hike in the dividend. The shares, which are up 34% over the last three months, drifted 0.5% lower to £14.
Positive inflows continued into the first quarter of the new financial year with a record £971 million. Management attributed this to ‘the excellence of our investment teams and processes, the loyalty of our clients, the power of our brand and the strength of our sales and marketing capability.’
It is hard to argue with such claims given that Assets under Management and Advice (AuMA) have grown from £1 billion a decade ago to £25 billion with the current acquisition of Architas UK.
FOCUS ON ESG
The company will produce its first sustainability report in July where it will set out targets relating to climate change and being a responsible investor, including diversity and equal opportunity.
This will include providing tools, training and resources for its investment managers to consider and encourage them to push for positive change.
Funds with a specific sustainability mandate account for £5bn of assets or around a fifth of the total following the Architas deal.
The company has been active in supporting local communities during lockdown, working through partners to provide extra help for children of vulnerable families, food banks, the homeless and ZSL London Zoo.
PROFITABLE GROWTH
Revenues increased 26% to £107 million and adjusted profit before tax was also higher 26% to £38 million, leading to adjusted earnings per share of 56.7 pence, up 21% year-on-year.
A second interim dividend payment of 24 pence will be payable on 21 August and takes the total dividend to 33 pence per share, up 22%.
