Rob Murphy, Managing Director at leading investment research and consultancy firm Edison Group, shares his thoughts following Liontrust Asset Management’s full year results.
Rob Murphy, Managing Director at Edison Group, comments:
“The sustainability-focused investment manager has posted a strong set of results for the year, pre-tax profit rose 116% to £34.9 million pounds, while adjusted pretax profit, a more valuable metric that strips out exceptional and other one-off items, rose 69% to £64.3 million compared with £38.1 million the previous year.
“Profit growth was driven by revenues, which increased to £175.1 million from £113.1 million on the back of strong growth in assets under management and advice (AuMA). AuMA at year-end stood at £30.93 billion, compared with £16.1 billion a year earlier, with net inflows of £3.5 billion, compared with £2.7 billion as Liontrust benefited from the ‘tailwind’ behind ESG and the team’s 20 year investment track record.
“The healthy growth in profit allowed dividends to be hiked: a second interim dividend of 36.0 pence a share was announced, taking the total for the year to 47.0 pence which is a 42% increase from 2020.
“The outlook for further net inflows looks positive with the increasing interest in sustainable investment and also the upcoming launch of Liontrust’s first investment trust – the Liontrust ESG Trust Plc – planned for 5th July. This trust will be unconstrained by market cap and being closed-ended, will benefit investors by being able to own smaller less liquid stocks not suitable for the open-ended funds.”
