Strong performance for Liontrust as demand for sustainable investment grows

In a recent trading update Liontrust Asset Management reported another strong performance  in the first three months of 2020 with total assets under management (AUM) increasing 27% on the previous year to £16.1bn.

Net inflows for the quarter were £492m and £2.7bn for the year ending 31st March, a 52% year on year increase.

In announcing its performance, chief executive John Ions said the company’s board and management was ‘incredibly proud’ of the way in which its people had adapted to the coronavirus pandemic as working from home becomes the new norm, and what the company had delivered.

‘Liontrust went into the pandemic in a strong position, and by maintaining the processes we have put in place over the past decade, we have been able to replicate how we work normally.

‘even more focus on investing in companies that contribute to and benefit from making the world cleaner, healthier and safer’

‘This includes our fund managers and traders along with continuing to provide first-class service and communication.

‘We have said many times in the past that performance is never predictable but process should always be.’

Mr hailed the ‘outstanding performance’ by many of its funds over the long term as well as since the pandemic impacted global markets in late February.

‘All four funds managed by the economic advantage team are in the first quartile of their respective IA sectors over one and three years, and three of them are first quartile over five years.

‘All eight of the equity and managed funds run by the sustainable investment team are first quartile over one, three and five years.’

Liontrust’s strong net inflows continued into April with £136m being added between the 1st and the 9th which Mr Ions describes as ‘testament to the belief’ of its clients in the firm and its funds, the power of its brand, sales and marketing and the assurance of its administration.

‘Our robust investment and working processes give me great confidence that Liontrust will navigate the pandemic successfully’

‘We adapted our communications following the imposition of the lockdowns in the UK and continental Europe, hosting 11 webinars with fund managers from 19 March to 8 April.

‘We have constructed a new content portal called Liontrust Insights to host the myriad views and ideas of all our fund management teams.’

Mr Ions said the pandemic was taking a ‘terrible toll’ on human and economic life but that the ‘will, ingenuity and collaboration’ of people and business would prevail:

‘Sustainability has been rising up the agenda, and when we emerge from the lockdown there will be even more focus on investing in companies that contribute to and benefit from making the world cleaner, healthier and safer.

‘This month, the sustainable investment team celebrated three years at Liontrust.

‘The assets under management of the team have more than doubled over this period and they have delivered the market leading performance you would expect from a well-established team that has been managing sustainable funds for nearly 20 years.’

Mr Ions said that Liontrust was focussed on integrating sustainability throughout the business, believing that the crisis had reiterated the responsibility it had as investors and ‘guardians of people’s savings’.

‘We also have a responsibility to the wider community – during the current lockdown, Liontrust will be giving extra support to our existing partners to provide enhanced help to the homeless, those people requiring food banks, young unemployed seeking jobs, the elderly and animal welfare.

‘Our robust investment and working processes give me great confidence that Liontrust will navigate the pandemic successfully.’

Shares in Liontrust Asset Management rose 3.1% at 1,031.04p on the announcement and are currently trading at 1.076.10p.