Liontrust has seen total assets smash through £33bn as it preps to launch its debut ESG trust next week.
In its full year results the FTSE 250 manager said assets under management and advice (AUMA) had ballooned by 92% to £30.9bn in the year to the end of March and by 18 June had hit £33.3bn.
Net inflows into the business were £3.5bn, a 30% increase from the £2.7bn brought in during 2020.
As previously flagged, adjusted profit before tax came in significantly higher than anticipated at £64.3m, a 69% increase, driven by the strong growth in AUMA and £13.7m in performance fees.
Chief executive Jon Ions (pictured) said Liontrust’s momentum over the past year has been spurred by demand for its sustainable investment funds as “the tailwind behind ESG continues”.
Liontrust was the third top selling fund group in Q1 with £924m of net retail sales, behind Baillie Gifford and Allianz Global Investors.
Its sustainable investment business is now the largest in its stable with £10.2bn in assets, £9.4bn of which represents money from UK retail investors.
Liontrust has ‘a few aces up its sleeve’ with ESG trust launch
The hotly anticipated Liontrust ESG trust launch on 5 July is expected to drive more flows its way.
Managed by Peter Michaelis, Simon Clements and Chris Foster from the 13-strong Liontrust sustainable investment team, the trust will have a concentrated portfolio of 30 stocks. Though it will be managed in a similar fashion to the team’s existing Global Growth fund it will target smaller companies that are more difficult for the open-ended fund to invest in.
“A couple of high-profile investment trust launches failed to get off the ground last year, but Liontrust has a few aces up its sleeve,” said AJ Bell financial analyst Laith Khalaf.
“The vaccine roll-out has delivered a significant boost to investor confidence, and Liontrust is launching this trust in the ESG space, where we know there is a lot of demand right now.”
Liontrust’s sustainable investment team “is one of the oldest in the business,” Khalaf added, having started life at Aviva Investors in 2001.
“Experience counts for nothing if it doesn’t deliver performance though, and the Sustainable Future Global Growth fund has shot the lights out on that front, ranking 15th out of 194 funds in the Global sector over ten years, with a total return of 310%, compared to 224% from the MSCI World Index,” Khalaf said.
