Liontrust Asset Management revealed it made gross profit of £231m in the past financial year, a 41% increase on the 2020-21 period.
As of 31 March 2022, assets under management and advice (AuMA) were £33.5bn, up 8.5% on 2021's results (£30.9bn).
The acquisition of Majedie Asset Management back in April added £5.2bn to the AuMA, which would take the total up to £38.7bn, if included.
UK inflation hits 40 year high of 9.1% in May
The acquisition was one of the highlights for the group in what has been a tougher 2022 period.
In the chief executive's report, John Ions (pictured) acknowledged that: "Liontrust experienced a more challenging period for short-term performance over the last few months of the financial year given the market rotation from quality growth stocks to value companies.
"This rotation has been exacerbated by rising inflation and subsequent increases in interest rates in the UK and US, with the former partly as a result of supply chain issues caused by the ongoing effects of the pandemic and the war in Ukraine."
Indeed, in Q4 2022, Liontrust experienced £0.4bn in outflows, "which reflected the negative sentiment among investors generally" as the Investment Association found that Q4 2022 was the first quarter of net negative retail flows for the industry since the start of the pandemic in 2020.
Despite these stylistic headwinds, Liontrust enjoyed positive net inflows overall of £2.5bn for the past financial year.
Ions stood firm in Liontrust's investment process in the face of more choppy markets: "Whatever the challenges ahead for the global economy, our investment excellence, robust processes and high-quality service give me great confidence that over the long term we can continue to deliver positive outcomes for our investors and therefore our shareholders and other stakeholders."
He added that the teams have generally made "very few changes" to the companies they invest in "because of their belief in their long-term business models and the concomitant competitive advantages that support them".
"They have identified opportunities to add to existing holdings at cheaper valuations and in some cases invest in companies that were previously considered too expensive," he explained.
As well as its M&A activity, the company has expanded via its fund offering, the third pillar of its strategic objectives.
Ions said they had experienced a "growing demand for a broader range of funds" over the year, demand that was met with the launch of a European Growth and Global Dividend funds.
ESG remained a core part of Liontrust's business. The group signed the Net Zero Asset Managers' Initiative in May 2022, which it said "will surface the invisible in terms of the various approaches of investors".
"It will also enable a move from take, make, break to a sustainable future".
In the chair's statement, Alastair Barbour said these pledges, combined with internal governance structures "provide a solid platform on which the group can expand its expertise to ensure that Liontrust's offering in ESG and sustainable investment is fit for purpose for the next decade".
