Gresham House plc (LON:GHE), the specialist alternative asset manager, has provided the following COVID-19 related trading update for the six-month period to 30 June 2020.
- Trading at least in line with market expectations for FY20
- AUM growth of £467m in H1 (+17%), including organic growth of £283m (+10%)
- Debt-free balance sheet with £22m cash
- LF Gresham House UK Multi Cap Income Fund the top performer over three years1
The Company has continued its positive momentum with current trading at least in line with market expectations. As at 30 June 2020, Assets Under Management (AUM) have risen to £3.3 billion, up £467 million on 31 December 2019 (+17%), including organic AUM growth of £283 million (+10%). This performance reflects the relevance of our investment strategies despite challenging market conditions and is underpinned by the growing interest in specialist and sustainable investment. The Company has maintained a strong balance sheet position, with cash of £22 million and no debt.
“Business as usual” has prevailed during the course of the pandemic, with employees able to perform whilst working remotely and the Group has not had to furlough any staff. Strong fundraising in the first half of the year has driven growth in Real Assets AUM of £360 million (+17%). A growing client base across Institutional, Wholesale and Family Office investors has supported the British Strategic Investment Fund strategy (BSIF), the Gresham House Energy Storage Fund plc (GRID) and Forestry investments, demonstrating the attractive and sustainable nature of our market-leading growth opportunities in Environmental, Social and Governance (ESG) funds.
Recognising the growing demand for our ESG-focused strategies, the Company has appointed Rebecca Craddock-Taylor as Director of Sustainable Investment. Rebecca will lead the ongoing development and integration of the Company’s existing sustainable investment policies across both the Real Assets and Strategic Equity divisions and all investment strategies. Senior appointments to the International Forestry and Sustainable Infrastructure teams, David Gardner and Peter Bachmann respectively, have maintained our commitment to invest in resources behind the sustainability agenda. Gresham House is hosting a webinar on ESG Investing: Sustainable Real Assets at 11am today, Thursday 16 July 2020. Registration is available on the Company’s website: https://greshamhouse.com/webinar-gresham-house-plc-esg-investing-sustainable-real-assets/.
The integration of TradeRisks into Gresham House has gone well since the acquisition in March 2020. This has been evidenced by the planned launch of the Gresham House Residential Secure Income LP (GH ReSI LP), a fund targeting the UK shared ownership market which has already had good interest from institutional investors.
Despite market volatility, the Strategic Equity division has seen positive net inflows, including to our open-ended funds the LF Gresham House UK Micro Cap and LF Gresham House UK Multi Cap Income funds, alongside winning the c.£150 million Strategic Equity Capital plc (SEC) mandate. The LF Gresham House UK Multi Cap Income Fund is celebrating its three-year anniversary to 30 June 2020 and is the best performing fund in the IA UK Equity Income sector over this period1.
- Source: Gresham House, Trustnet. Based on peer group of 87 funds in the IA UK Equity Income sector over three years, as at 30 June 2020.
Assets Under Management as at 30 June 2020
| £ millions | AUM Dec-19 | Net Fund Flows2 | Performance | Funds Acquired/Won3 | AUM Jun-20 | Total Growth% |
| Strategic Equity | ||||||
| Public Equity | 283.7 | 59.0 | (26.3) | 147.6 | 464.0 | 63.6% |
| Private Equity | 424.5 | 20.6 | (38.0) | (55.2) | 351.9 | (17.1)% |
| Subtotal | 708.2 | 79.6 | (64.3) | 92.4 | 815.9 | 15.2% |
| Real Assets | ||||||
| Forestry | 1,333.3 | (8.5) | 72.1 | – | 1,396.9 | 4.8% |
| New Energy | 535.3 | 31.2 | (17.9) | – | 548.6 | 2.5% |
| Infrastructure & Housing | 220.0 | 100.0 | (1.2) | 184.0 | 502.8 | 128.5% |
| Subtotal | 2,088.6 | 122.7 | 53.0 | 184.0 | 2,448.3 | 17.2% |
| Total AUM | 2,796.8 | 202.3 | (11.3) | 276.4 | 3,264.2 | 16.7% |
2. Including funds raised, redemptions and distributions.
3. The LMS Capital plc contract was terminated in January 2020 with a NAV of £55.2 million and is included in Funds Acquired/Won.
Tony Dalwood, Gresham House Chief Executive Officer states:
“We are pleased with the performance in the first half of the year against an unprecedented backdrop and expect to remain at least in line with market expectations on the current trajectory for 2020. Despite market uncertainty, we look ahead with confidence, grounded in the demonstrable resilience of our investment strategies and the fundamental strength of our platform as we plan for further growth from existing and new Gresham House funds.
Our natural focus on ESG principles together with strong market positions, investment performance and balance sheet continue to support growth as we fundraise to meet client demand across our sustainable and open-ended investment strategies.
The performance of Gresham House in the first half of the year has been testament to the resilience and quality of the team, working in challenging conditions, and we look forward to building on this in the second half of 2020 and beyond.”
