Liontrust Asset Management PLC (LSE: LIO)

Liontrust Asset Management PLC is a FTSE 250 Index Listed, United Kingdom-based holding company. The Company is engaged in specialist fund management business. The Company primarily invests in global equities, global fixed income, sustainable investment, and multi-asset portfolios and funds. The Company, through its subsidiary, Liontrust Fund Partners LLP, is engaged in managing unit trusts. This Report covers the Investment Highlights, Conclusion, and Recommendation on the stock.

Q1 FY24 Trading Update (for the three months to 30 June 2023, released on 14 July 2023)

• AUM Update: The company reported a marginal decline of 6% in the Assets Under Management at GBP 29.5 bn for Q1 FY24. Also, there was a net outflow of GBP 1.6 bn for the reported period, on account of the financial turmoil, rising interest rates, etc.
• Acquisition Update: On 7 July 2023, the company announced the approval for the proposed acquisition of GAM Holding, which will enable the LIO to become a global asset manager with approx. AUM of 53 bn on a pro forma basis.  
• Technical Update: The prices of LIO are continuously forming lower lows and lower highs, which narrates the continuous downtrend in which the stock prices are trading. In various instances, short-term rallies were observed in the prices but eventually, they were sold off. Unless the prices manage to make a strong support base, the trend reversal can not be confirmed. The RSI is pointing at 44.38, which shows the prices are heading down from current levels.

Share Price Chart

Conclusion 

Due to the current macroeconomic condition, poor sentiments, and considering the outflows and technical chart pattern, a "WATCH" recommendation on Liontrust Asset Management PLC (LSE: LIO) has been given at the current market price of GBX 626.82 (as of 06 September 2023, 12:40 PM GMT+1).  

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 31 August 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 4: Dividend Yield may vary as per the stock price movement.

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