Liontrust Asset Management : Trading Update

LEI: 549300XVXU6S7PLCL855 For immediate release

14 July 2023

Stock Exchange Announcement

LIONTRUST ASSET MANAGEMENT PLC

Trading Update

Liontrust Asset Management Plc ("Liontrust", or the "Company"), the specialist independent fund management group, today issues its trading update for the three months ended 30 June 2023 (the "Period").

Highlights

• Net outflows of £1.6 billion1 in the Period.
• Assets under management and advice ("AuMA") were £29.5 billion as at 30 June 2023, a decrease of 6% over the Period.
• At the 7 July 2023 general meeting to approve the proposed acquisition of GAM
  Holding AG ("GAM"), the resolutions proposed were passed with 83.7% votes in favour.
• On 29 June 2023, GAM announced that it had agreed to sell its third-party Fund Management Services business to Carne Group, a material step towards fulfilling the FMS Exit condition of our offer for GAM.
• Silchester International Investors LLP has informed GAM that it will tender its shares
  (approximately 17.3% of GAM's share capital) into the Liontrust offer.
• AuMA as at 12 July 2023 were £29.0 billion.

1 Includes £516 million related to the Tortoise funds following the previously announced resignation of the lead manager, Matt Smith.

Commenting, John Ions, Chief Executive, said:

"The last quarter continued to show the importance and benefits of having a broad product range with diversification across investment styles as well as asset classes. In a risk-off environment, our strong focus on equities has proved to be challenging, especially when the UK market has been out of favour. This is demonstrated by equities having had net negative retail sales in the UK in 10 of the last 12 months to the end of May 2023, according to the Investment Association.

Our business is in robust health despite the current market environment. This provides a strong platform for future growth with the proposed acquisition of GAM bringing us the benefits of increasing investment talent; diversifying funds, asset classes and investment styles to offer more solutions to clients; broadening distribution across the world; and expanding the client base.

The support for the proposed acquisition of GAM by Liontrust's shareholders is a vindication of our belief this deal will accelerate our strategic aims. We have also gained the support of GAM's largest shareholder, Silchester International Investors LLP, who announced they are

Classified as Highly Confidential

tendering approximately 17.3% of GAM's share capital as they believe it is in the best interests of their clients to do so.

The excellence of our investment teams and investor service has been illustrated again during this period. The Liontrust European Dynamic Fund has won the award for Best Europe Fund at the Fund Manager of the Year Awards for the second year running. The Liontrust GF European Strategic Equity Fund, also managed by the Cashflow Solution team, was nominated as the Best Absolute Return Fund at the same awards.

We were also awarded Best Website at the Investment Marketing and Innovation Awards and named Best Investment Trust Group at the Online Money Awards, with the latter voted for by retail investors.

In response to client demand, we have launched the Liontrust GF Sustainable Future US Growth Fund, which will seek to take advantage of the opportunities for sustainable investment in the US. The fund applies the Sustainable Future investment process that has been investing in the US through the team's global growth strategies for more than two decades.

We continue to apply the right processes to managing the business day in, day out and have full confidence in the investment teams' processes. These will ensure Liontrust delivers for clients and shareholders over the long term."

Update on the proposed acquisition of GAM Holding AG

Rationale for the proposed acquisition of GAM

The proposed acquisition of GAM will accelerate Liontrust's strategic progress and growth through its broader investment capability and global distribution.

• Deliver market leading investment performance over the longer term: GAM's investment teams have delivered strong performance over the long term across asset classes, and nine fund managers are rated A to AAA by Citywire. Liontrust has created an environment in which fund managers can focus on investment and their distinctive investment processes; in taking this approach, there is cultural alignment between Liontrust and GAM.
• Diversify the fund range: GAM's broad range of funds and asset classes will enhance Liontrust's product range. The expanded range will offer the potential to grow the combined client base and provides Liontrust with differentiated performance across the fund range through the market cycle.
• Expand distribution and the client base: GAM will enhance distribution globally and provide the opportunity to increase sales and market share. GAM's largest markets are Switzerland, Germany, Iberia, Italy and the US, compared with the UK for Liontrust, and therefore the two companies have limited overlap in distribution by source of AuMA. The Proposed Acquisition also presents the opportunity to access and develop nascent markets such as the Americas and Asia-Pacific, where GAM has a presence.

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Liontrust general meeting

At the 7 July 2023 general meeting, the resolutions to approve the proposed acquisition of GAM and to authorise the Directors to allot new ordinary shares in the Company up to an aggregate nominal amount of £94,053.03 were passed with 83.7% votes.

GAM Fund Management services business

On 29 June 2023, GAM announced that it had entered into definitive asset purchase agreements to sell its loss-makingthird-party fund management services businesses in Luxembourg and Switzerland ("FMS Businesses") to Carne Group (the "FMS Sale"). The Board understands that the FMS Sale includes the transfer of relevant employees, fund contracts and other agreements relating to the FMS Businesses and is a material step towards fulfilling the FMS Exit2 condition of our offer for GAM.

2 As defined in paragraph 3 of Part 5 of the circular in relation to the proposed acquisition of GAM dated 13 June 2023.

Support from GAM's largest shareholder

On 13 July 2023, GAM announced that its largest shareholder, Silchester International Investors LLP, had informed GAM that, in recognition of the strategic review carried out by GAM and in the absence of viable alternatives, Silchester confirmed it will tender its shareholding of approximately 17.3% of GAM's share capital into the Liontrust offer.

Assets under management and advice

On 30 June 2023, our AuMA stood at £29,507 million and were broken down by type and investment process as follows:

		Institutional	Investment	UK Retail	Alternative	International
Process	Total	Accounts &	Funds &	Funds &
Trusts	Funds
		Funds	MPS	Accounts
	(£m)	(£m)	(£m)	(£m)	(£m)	(£m)
Sustainable Investment	10,831	354	0	9,989	0	488
Economic Advantage	7,443	433	0	6,806	0	204
Multi-Asset	4,792	0	0	4,603	189	0
Global Innovation	652	0	0	652	0	0
Cashflow Solution	1,488	540	0	829	113	6
Global Fundamental	4,025	913	1,098	1,757	216	41
Global Fixed Income	276	0	0	87	0	189
Total	29,507	2,240	1,098	24,723	518	928

AuMA as at 12 July 2023 were £28,975 million.

Flows

The net outflows over the Period were £1,629 million2 (2022: £541 million). A reconciliation of fund flows and AuMA over the Period is as follows:

		Institutional	Investment	UK Retail	Alternative	International
		Accounts &	Funds &	Funds &
		Trusts	Funds
	Total	Funds	MPS	Accounts
	(£m)	(£m)	(£m)	(£m)	(£m)	(£m)
Opening AuMA - 1 April 2023	31,430	2,394	1,139	25,721	1,084	1,092

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Net flows3	(1,629)	(177)	(9)	(793)	(521)	(129)
Market and Investment	(294)	23	(32)	(205)	(45)	(35)
performance
Closing AuMA - 30 June 2023	29,507	2,240	1,098	24,723	518	928

3 Includes £516 million related to the Tortoise funds following the previously announced resignation of the lead manager, Matt Smith..

UK Retail Fund Performance (Quartile ranking)

	Quartile ranking	Quartile	Quartile	Quartile	Launch Date/
	- Since
	ranking -	ranking - 3	ranking -	Manager
	Launch/Manager
	5 year	year	1 year	Appointed
	Appointed
Economic Advantage funds
Liontrust UK Growth Fund	1	1	2	3	25/03/2009
Liontrust Special Situations Fund	1	1	3	3	10/11/2005
Liontrust UK Smaller Companies	1	1	2	2	08/01/1998
Fund
Liontrust UK Micro Cap Fund	1	1	1	2	09/03/2016
Sustainable Future funds
Liontrust SF Monthly Income Bond	1	2	2	3	12/07/2010
Fund
Liontrust SF Managed Growth Fund	2	1	3	1	19/02/2001
Liontrust SF Corporate Bond Fund	1	3	3	2	20/08/2012
Liontrust SF Cautious Managed	2	3	4	4	23/07/2014
Fund
Liontrust SF Defensive Managed	1	2	4	4	23/07/2014
Fund
Liontrust SF European Growth Fund	3	4	4	4	19/02/2001
Liontrust SF Global Growth Fund	3	1	4	2	19/02/2001
Liontrust SF Managed Fund	1	1	4	1	19/02/2001
Liontrust UK Ethical Fund	3	4	4	4	01/12/2000
Liontrust SF UK Growth Fund	3	4	4	4	19/02/2001

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Global Innovation funds

Liontrust Global Dividend Fund	2	1	3	1	20/12/2012
Liontrust Global Innovation Fund	1	3	4	1	31/12/2001
Liontrust Global Technology Fund	2	2	2	1	15/12/2015
Global Fundamental Global Equity funds4
Liontrust Balanced Fund	1	1	3	1	31/12/1998
Liontrust China Fund	4	4	3	2	31/12/2004
Liontrust Emerging Market Fund	3	4	3	3	30/09/2008
Liontrust Global Smaller Companies	1	3	4	2	01/07/2016
Fund
Liontrust Global Alpha Fund	1	1	4	1	31/12/2001
Liontrust India Fund	4	3	1	2	29/12/2006
Liontrust Japan Equity Fund	2	2	1	3	22/06/2015
Liontrust Latin America Fund	3	4	4	4	03/12/2007
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	2	08/05/2018
Global Fundamental funds5
Liontrust UK Equity Fund	1	3	2	1	27/03/2003
Liontrust UK Focus Fund	1	3	3	1	29/09/2003
Liontrust Income Fund	1	1	2	1	31/12/2002
Liontrust UK Equity Income Fund	2	4	3	1	19/12/2011
Liontrust US Opportunities Fund	2	3	3	4	31/12/2002
Edinburgh Investment Trust Plc6	1	-	1	1	27/03/2020
Liontrust Global Equity Fund	2	1	2	2	30/06/2014
Liontrust Global Focus Fund	2	2	2	2	30/06/2014

Classified as Highly Confidential