TIDMLIO
RNS Number : 8743A
Liontrust Asset Management PLC
02 October 2020
LEI: 549300XVXU6S7PLCL855
FOR IMMEDIATE RELEASE
02 October 2020
Stock Exchange Announcement
LIONTRUST ASSET MANAGEMENT PLC
Liontrust agrees to sell the Asia Income Team and Investment
Team closures
Introduction
Liontrust Asset Management Plc ("Liontrust" or the "Company"),
the specialist independent fund management group, today announces
that its indirect subsidiaries, Liontrust Investment Partners LLP
and Liontrust Fund Partners LLP (together the "Liontrust Sellers"),
have entered into a conditional agreement (the "Agreement") to sell
(the "Sale") the Asia Income investment team (the "Asia Income
Team") to Somerset Capital Management LLP ("Somerset").
Mark Williams, Carolyn Chan and Shashank Savla, the members of
the Asia Income Team, will join Somerset. The Sale includes the
right to manage the Liontrust Asia Income Fund (the "Fund"). The
Liontrust GF Asia Income Fund is not part of the Sale and will be
closed.
Liontrust also announces the closure of the European Income and
Macro Thematic investment teams ("Team Closures").
Background to and reasons for the Sale and Team Closures
Liontrust has enjoyed significant growth over the past few years
and has added the Sustainable Investment, Global Fixed Income and
Global Equity teams since 2017. The completion of the acquisition
of the Architas UK Investment Business on 30 October 2020 will take
Liontrust's AuMA to more than GBP25 billion.
As a result of this rapid growth, we have been reviewing our
fund ranges and evaluating where best to devote our resources and
strategic focus over the next few years. This review coincided with
Liontrust being approached by Somerset to acquire the Asia Income
Team and the Asia Income Fund.
After consideration and discussions with Somerset and the Asia
Income Team, the Directors of the Company decided that the Sale to
Somerset, a specialist Emerging Markets and Asian equities fund
management business, is in the best interests of the investors in
the Fund, the Asia Income Team and Liontrust shareholders.
This review has also led to Liontrust deciding to close the
European Income and Macro Thematic investment teams.
Information on Asia Income Team
The Asia Income Team's assets under management and advice
("AuMA") as at 30 September 2020 were GBP82 million(1) .
(1) Excludes the Liontrust GF Asia Income Fund (GBP14.7 million
AuMA), which will be closed.
Details of the Sale
Following the closure of the Liontrust GF Asia Income Fund,
which is expected to happen by the end of October 2020, the Asia
Income Team will leave Liontrust and move to Somerset, at which
point Somerset will be appointed as sub-investment manager of the
Fund, on normal commercial terms. On Completion, the Fund will move
to Somerset and the sub-investment management agreement will
terminate. The total consideration for the Sale will be an amount
in cash of up to GBP2 million payable over 5 years.
The value of the gross assets being disposed by the Liontrust
Sellers is nil. The profits attributable to the Asia Income Team
for the year to 31 March 2020 were GBP0.2 million and we expect the
Sale to have a neutral effect on earnings.
Completion is conditional upon, amongst other things, obtaining
applicable regulatory approvals, and the Agreement becoming
unconditional in all respects and not having been terminated in
accordance with its terms prior to Completion. Completion is
expected to take place in the first quarter of 2021 .
Details of the Team Closures
As noted above, we have been reviewing our fund ranges and
evaluating where best to devote resources and strategic focus over
the next few years. This review has led to Liontrust deciding to
close the European Income and Macro Thematic investment teams.
The AuMA of the two investment teams as at 30 September 2020
were:
Team name AuMA
European Income GBP111 million
---------------
Macro Thematic GBP84 million
---------------
Total GBP195 million
---------------
The Liontrust European Income and European Enhanced Income funds
managed by the European Income team are to be managed by the
Cashflow Solution team with immediate effect and will be merged
into the Liontrust European Growth Fund.
The Liontrust Macro Equity Income Fund is to be managed with
immediate effect by the Global Equity team and will be merged into
the Liontrust Income Fund while the Liontrust Macro UK Growth Fund
is to be managed with immediate effect by the Economic Advantage
team and will be merged into the Liontrust UK Growth Fund.
These fund mergers are subject to regulatory and investor
approval and we expect them to take place later this year.
The members of the European Income and Macro Thematic teams will
leave Liontrust in due course.
Notice of Half Year End Trading Update
Liontrust confirms that it will be releasing its half year end
trading update for the six months ended 30 September 2020 on
Wednesday, 7 October 2020.
For further information please contact:
Liontrust Asset Management Plc 020 7412 1700
John Ions www.liontrust.co.uk
Vinay Abrol
Simon Hildrey - Chief Marketing Officer
David Boyle - Head of Corporate Development
N+1 Singer Advisory LLP 020 7496 3000
Corporate Broking- Tom Salvesen
Numis Securities Limited 020 7260 1000
Corporate Broking & Advisory - Charles Farquhar
Panmure Gordon 020 7886 2500
Corporate Advisory: Dominic Morley, Nicholas Harland, Ailsa
MacMaster
Corporate Broking: Charles Leigh-Pemberton
ENDS
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