Liontrust Asset Management : Interim Report & Financial Statements 2022

PRIDE IN OUR PERFORMANCE

H A L F - Y E A R R E P O R T A N D C O N D E N S E D I N T E R I M F I N A N C I A L

S TAT E M E N T S ( U N A U D I T E D ) T O 3 0 S E P T E M B E R 2 0 2 2

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

DIRECTORS AND ADVISERS

DIRECTORS, REGISTERED OFFICE	Legal Advisers:
AND COMPANY NUMBER:	Simmons & Simmons LLP,
Alastair Barbour (Non-executive Chair)	City Point, 1 Ropemaker Street,
	London, EC2Y 9SS
John Ions (Chief Executive)
	Macfarlanes LLP,
Vinay Abrol (Chief Operating Officer and Chief Financial Officer)	20 Cursitor Street,
	London, EC4A 1LT
Rebecca Shelley (Senior Independent Director)	Bankers:
Mandy Donald (Non-executive Director)	Royal Bank of Scotland Plc,
	280 Bishopsgate,
Emma Howard Boyd CBE (Non-executive Director)	London, EC2M 4RB
Quintin Price (Non-executive Director)	Financial Adviser and Corporate Broker:
	Singer Capital Markets,
George Yeandle (Non-executive Director)	1 Bartholomew Lane,
	London, EC2N 2AX
2 Savoy Court, London, WC2R 0EZ.
Registered in England with Company Number 02954692.	Panmure Gordon,
Company Secretary:	One New Change,
London, EC4M 9AF
Mark Jackson	Registrars:
Independent Auditors:	Equiniti Limited,
KPMG LLP,	Aspect House,
15 Canada Square,	Spencer Road,
London, E14 5GL	Lancing,
	West Sussex, BN99 6DA
	With effect from 14 November 2022 Link Asset Services were replaced by Equiniti.

2 LIONTRUST ASSET MANAGEMENT PLC HALF YEAR REPORT 2022

CHIEF EXECUTIVE'S STATEMENT

The excellence of our investment management teams, brand, communications and distribution have been central to the success of Liontrust over the past few years. These strengths will stand us in good stead in both the current challenging environment and to drive growth over the long term.

We have seen the impact of macro-economic events in the UK and globally on asset management sales this year, and Liontrust has not been immune to this. The industry trend in the UK has continued in the third quarter of 2022.

I believe our strategy will enable us to emerge from the current environment in a strong position within the UK asset management industry and to develop our business successfully by meeting the demands and needs of investors.

Consolidation in the asset management industry will continue, and acquisitions remain a key part of meeting our strategic objective of expanding Liontrust's distribution and products to diversify our business. Consolidation presents opportunities for Liontrust to buy businesses that have not achieved the required brand profile and breadth of distribution to prosper, even when they have strong investment management capability.

In acquiring companies where there is the opportunity to improve their business performance, we can integrate them into our proven business model to provide their investment teams with a strong sales and marketing platform. In turn, they can broaden our product range, enhance our investment proposition and therefore further diversify Liontrust's distribution.

The acquisition of Majedie Asset Management has enhanced our product range through the long/short equity fund Tortoise and Edinburgh Investment Trust, as well as enabling us to meet the strategic objectives of enhancing our institutional distribution capability and acquiring talent. Tortoise has added to Liontrust's other alternative investment funds - GF European Strategic Equity and the MA Diversified Real Assets funds - for which there is increasing demand especially in Europe.

Diversifying our distribution internationally will play a key role in delivering future growth for Liontrust, both in Europe and

beyond. A broader fund range and product mix, including alternatives, and increasing our number of strategic partners will help drive this.

In doing so, we will remain focused on the quality of our investment teams and funds. Central to our strategy has always been to have expertise in all the areas of investment we offer and for each team to have robust and repeatable processes. This will not change.

The benefit of this approach is demonstrated by strong long- term fund performance and the fact that research shows the Liontrust Sustainable Investment and Economic Advantage teams are regarded as leaders in their respective asset classes among both professional intermediaries and retail investors in the UK (Source: Research in Finance).

This is one part of delivering another of our strategic objectives of enhancing the investor experience. I am pleased that despite the general negative investor sentiment, Liontrust has been able to maintain strong communication and engagement with our clients. This is shown by the fact that more than 900 professional investors registered for Liontrust's virtual Sustainable investment conference held on 9 November, which is over 20% higher than two years ago.

The evidence of the success of our focus on investment management and client service has also been demonstrated by gaining further independent recognition through Liontrust winning the award for Best UK Manager of the Year at the Financial News' Excellence in Fund Management Awards 2022 in November. Given Financial News' focus on institutional investment, this shows the degree to which we have been able to diversify over the past few years.

I am confident that a clear focus on our strategy will ensure Liontrust continues to enhance our investment capability, broaden distribution and strengthen the brand profile. This will enable Liontrust to deliver for investors and shareholders over the long term.

John Ions

Chief Executive

LIONTRUST ASSET MANAGEMENT PLC HALF YEAR REPORT 2022 3

CHAIR'S STATEMENT

At a time of what feels like continuous political, economic and market instability, it is imperative that your Company remains focused on the long-term interests of our clients, colleagues and you as shareholders. It is easy to lose focus in such an environment and chase returns or a different strategy.

We must, and we do, challenge ourselves as to whether our strategy is the correct one and is being implemented as effectively as possible. We remain steadfast in our belief that both continue to be true. In the Chief Executive's Statement, John Ions explains how the strategy is being delivered despite the challenging environment this year.

The acquisition of Majedie Asset Management has been impacted by global events and their effect on investment markets, which we could not foresee at the time of purchase. Buying Majedie was consistent with the strategy of continuing to diversify our investment management and distribution capability. This leads to a more robust and resilient business over the long term as we have proved with Liontrust's other acquisitions over the last decade.

It is this track record and the excellent management of the business that has led to Liontrust's growth and strong financial health. On behalf of the Board, I want to thank the whole Liontrust team for their hard work, commitment and adaptability to have kept on strategically expanding and enhancing the Company over the past few years whatever the external demands and challenges.

The UK's Financial Conduct Authority (FCA) has rightly increased the focus on the treatment of and communication with investors with two important pieces of regulations. Liontrust is well positioned to meet the demands posed by the Consumer Duty and the consultation paper on Sustainability Disclosure Requirements (SDR). The Company has always had a strong focus on delivering clear and frequent communications, engaging with consumers as well as institutional and professional investors, and will continue to ensure we meet the needs of retail investors going forward.

When it comes to SDR, our Sustainable Investment team has one of the longest track records in the market at more than 21 years and we are being transparent about the role of ESG in our other teams' investment processes. This includes detailing the impact of our funds' engagement with companies on behalf of investors. Concerns about greenwashing have been rising and we support efforts to ensure this is called out.

These new regulations are just one demonstration of why we believe that Liontrust's strategy and focus on positive outcomes for investors continue to put your Company in a strong position for future growth.

Results

Liontrust has delivered profit before tax of £14.066 million (2021: £31.063 million), a decrease of 55% compared to the equivalent period last year. This includes costs of £28.8 million (2021: £8.1 million) relating to recent acquisitions and associated restructuring costs; the amortisation and impairment of the related intangible assets; and other non-cash and non- recurring costs (see note 6 below).

The adjusted profit before tax was £42.867 million (2021: £39.256 million), an increase of 10%. Adjusted profit before tax is disclosed in order to give shareholders an indication of the profitability of the Group excluding non-cash expenses (intangible asset amortisation and impairment), and non- recurring expenses (acquisition related and associated restructuring and severance compensation related).

See note 6 below for a reconciliation of adjusted profit before tax.

Dividend

In accordance with the Company's dividend policy, the Board is declaring a first Interim dividend of 22.0 pence per share (2021: 22.0 pence) which will be payable on 13 January 2023 to shareholders who are on the register as at 9 December 2022, the shares going ex-dividend on 8 December 2022. Last day for Dividend Reinvestment Plan elections is 23 December 2022.

Shareholder services

With effect from Monday 14 November 2022, the Company has transferred the management of its share register from Link Group to Equiniti Limited ("EQ"). EQ's contact details are Equiniti Limited, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA. Telephone: [phone] (please use the country code if calling from outside the UK, lines are open 8:30am to 5:30pm (UK time) Monday to Friday (excluding public holidays in England and Wales)).

Outlook

Despite the challenging year so far, we are optimistic about the future growth of the Company. The confidence is based on the fact the business is financially strong, we have robust investment processes, we have been diversifying our investment capability and distribution, and the brand profile continues to be positive and strong. This belief is reflected in the Interim dividend payment we have announced.

4 LIONTRUST ASSET MANAGEMENT PLC HALF YEAR REPORT 2022

ASSETS UNDER MANAGEMENT AND ADVICE

On 30 September 2022, our AuMA stood at £31,695 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	11,005	323	-	10,049	-	633
Economic Advantage	7,577	417	-	6,909	-	251
Multi-Asset	5,893	-	-	5,546	347	-
Global Equity	1,163	62	-	1,101	-	-
Global Innovation	535	-	-	535	-	-
Cashflow Solution	989	517	-	354	112	6
Global Fundamental	4,089	1,347	1,059	1,086	451	146
Global Fixed Income	444	-	-	166	-	278
Total - 30 Sep 2022	31,695	2,666	1,059	25,746	910	1,314

AuMA as at 14 November 2022 were £33,461 million.

FLOWS

The net outflows over the six months to 30 September 2022 were £2,187 million (30 September 2021: net inflows £2,088 million). A reconciliation of fund flows and AuMA over the six months to 30 September 2022 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 Apr 2022	33,548	1,408	-	30,113	370	1,657
Net flows	(2,187)	(580)	-	(1,339)	172	(440)
Market and Investment performance	(4,814)	(473)	(180)	(3,906)	(27)	(228)
Majedie acquisition	5,148	2,311	1,239	878	395	325
Closing AuMA - 30 Sep 2022	31,695	2,666	1,059	25,746	910	1,314

LIONTRUST ASSET MANAGEMENT PLC HALF YEAR REPORT 2022 5