Liontrust Asset Management (LIO) is trying to cater for growing investor uncertainty over the timing and impact of the next rise in interest rates. The fund manager now offers three long-short funds - which can bet on falling as well as rising stock prices - for investors wishing to hedge their equity or credit exposure.
The company's shares have fallen by almost a quarter since their July peak. That reflects a fall in assets under management, which fell with the equity market from £4.49bn at the end of March to £4.42bn at the end of September. Yet they have since recovered to £4.6bn, and there were net inflows of £110m in the half (admittedly, down from £284m a year earlier). Margins also remain strong. Taking out non-cash and non-recurring items left adjusted pre-tax profit ahead by 16 per cent at £5.9m, with adjusted earnings per share up 11 per cent at 10.4p.
Investment returns are strong enough to keep drawing in retail assets. The Liontrust Special Situations Fund - now 10 years old - has delivered a 227 per cent return in that time, against 85.5 per cent from its average peer. And four of the company's six actively managed unit trusts with five-year track records have outperformed.
Analysts at Numis Securities are forecasting adjusted pre-tax profit for the year to March 2016 of £12.6m and EPS of 22.1p (from £12.1m and 20.8p in FY2015).
| LIONTRUST ASSET MANAGEMENT (LIO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 289p | MARKET VALUE: | £131m | |
| TOUCH: | 285-293p | 12-MONTH HIGH: | 394p | LOW: 247p |
| DIVIDEND YIELD: | 3.2% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 51p* | NET CASH: | £16.2m | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 15.8 | 3.2 | 7.7 | 2 |
| 2015 | 18.7 | 4.2 | 7.6 | 3 |
| % change | +18 | +31 | -1 | +50 |
Ex-div: 19 Nov Payment: 17 Dec *Includes intangible assets of £3.8m, or 8p a share | ||||
