Liontrust Asset Management : Annual report 2023

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 3

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

Our purpose is to enable investors to enjoy a better financial future.

INSIDE THIS REPORT

Financial highlights		Governance
Highlights and Key performance measures	4	Board of Directors
		Risk management and internal controls report
Strategic Report		Corporate Governance report
Chair's Statement	12	Directors' report
Chief Executive's report	14	Directors' responsibility statement
Our strategy	16	Nomination Committee report
Our business model	24	Audit & Risk Committee report
Financial review	30	Remuneration report
Sales and marketing review	38
Operations review	44	Financial Statements - Group and Company
Principal risks and mitigations	46	Consolidated Statement of Comprehensive Income
Our People	64	Consolidated Balance Sheet
Responsible Capitalism	70	Consolidated Cash Flow Statement
		Consolidated Statement of Changes in Equity
		Notes to the Financial Statements
		Company Financial Statements

Company Notes to the Financial Statements

Independent auditor's report to the members of Liontrust

Asset Management PLC

Shareholder Information

78

83

86

97

102

103

108

112

142

143

144

145

146

180

183

188

197

2 LIONTRUST ASSET MANAGEMENT PLC ANNUAL REPORT AND FINANCIAL STATEMENTS 2023

LIONTRUST ASSET MANAGEMENT PLC ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 3

FINANCIAL HIGHLIGHTS

HIGHLIGHTS

ASSETS UNDER MANAGEMENT AND ADVICE	NET FLOWS
31 March		31 March
2023	6%	2023
£31,430 million	£(4,841) million
31 March		31 March
2022		2022
£33,548 million	£2,488 million

GROSS PROFIT	PROFIT BEFORE TAX	ADJUSTED PROFIT
		BEFORE TAX*
3%	38%	10%

£231.3m	£229.8m	£79.3m	£49.3m
2022	2023	2022	2023

DILUTED EARNINGS	ADJUSTED DILUTED
PER SHARE	EARNINGS PER
	SHARE*
37%	14%

97.61 pence	61.21 pence	127.63 pence	109.78 pence
2022	2023	2022	2023

*These are Alternative Performance Measures. See Page 34 for further details.

£96.6m	£87.1m
2022	2023

TOTAL DIVIDEND

PER SHARE

0%

72 pence	72 pence
2022	2023

4 LIONTRUST ASSET MANAGEMENT PLC ANNUAL REPORT AND FINANCIAL STATEMENTS 2023

FINANCIAL HIGHLIGHTS

ASSETS UNDER MANAGEMENT AND ADVICE

On 31 March 2023, our AuMA stood at £31,430 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	11,210	347	-	10,286	-	577
Economic Advantage	7,896	430	-	7,242	-	224
Multi-Asset	5,052	-	-	4,810	242	-
Global Innovation	619	-	-	619	-	-
Cashflow Solution	1,437	543	-	747	140	7
Global Fundamental	4,855	1,074	1,139	1,886	702	54
Global Fixed Income	361	-	-	131	-	230
Total	31,430	2,394	1,139	25,721	1,084	1,092

31 MARCH

31 MARCH

Decrease of

2023	2022	6%
£31,430m	£33,548m

over the financial year

NET FLOWS

Liontrust recorded net outflows of £4,841 million in the financial year to 31 March 2023 (2022: £2,488 million inflows). A reconciliation of net flows 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 2022	33,548	1,408	0	30,113	370	1,657
Net flows	(4,841)	(1,148)	(89)	(3,185)	274	(693)
Market and Investment performance	(2,425)	(177)	(11)	(2,085)	45	(197)
Majedie acquisition	5,148	2,311	1,239	878	395	325
Closing AuM - 31 Mar 2023	31,430	2,394	1,139	25,721	1,084	1,092
31 MARCH	31 MARCH
2023	2022
£(4,841)m	£2,488m

LIONTRUST ASSET MANAGEMENT PLC ANNUAL REPORT AND FINANCIAL STATEMENTS 2023 5