Shares in investment manager Liontrust Asset management (LIO) gained 1.4% to hit a new all time high of £16.50 after the firm reported strong full year results to 31 March and a 42% increase in the dividend.
Group assets under management and advice grew 92% to £30.9 billion, helped by net inflows of £3.5 billion, market performance of £5.8 billion and last year’s acquisition of Architas UK which added £5.6 billion to the pot. As of 18 June the group’s assets under management and advice stood at £33.3 billion.
During the first three months of 2021 the group had the third highest net retail sales in the UK according to the Pridham Report, demonstrating the strong momentum enjoyed by the business.
ESG TRUST LAUNCH
Liontrust highlighted the tailwind behind ESG (environmental, social and governance) investing and reiterated its intention to launch its first investment trust, the Liontrust ESG Trust, on 5 July.
Financial analyst at AJ Bell, Laith Khalaf comments: ‘The ESG investment trust is a more high-octane version of Liontrust’s existing global fund, and will invest in ways which make it riskier, but with the potential for greater returns in the long run.
‘The trust will make use of gearing straight from the off, and borrowing is expected to be around 10%, which should help to turbo charge long term returns in a rising market, but also accentuate drawdowns along the way.’
Adjusted operating profit, which excludes non-cash items and restructuring charges related to acquisitions, increased 69% to £64.3 million.
Strong cash generation led the board to declare a second interim dividend of 36p per share, leading to a final dividend of 47p per share, up 42% year-on-year.
The company said it was well positioned to maintain growth and net inflows, supported by the successful diversification of its product range and services.
