Liontrust registers outflows in fourth quarter

Withdrawals from institutional investors led Liontrust to post a net outflow in the fourth quarter of 2013, according to the company’s interim management statement for the period.

Excluding the £123m added through Liontrust’s acquisition of multi-asset funds from North Investment Partners in October, the group saw a net £73m exit funds in the last three months of the year. This was largely down to an institutional investor exiting Michael Mabbutt’s Global Strategic Bond fund as well as another large investor withdrawing money from other funds in the range.

It follows a sustained period in which Liontrust had consistently registered net inflows in successive quarters.

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In total Liontrust added £365m in new assets in between April and December 2013, up from £253m in the same period in 2012.

Liontrust chief executive John Ions said the 6 per cent increase in assets under management in the fourth quarter would keep the group’s profitability “in line with expectations”.

“This reflects the robustness of the business and the more diversified fund management capability we have built over the past four years,” he added.

“Fund performance in 2013 was not as strong on a relative basis due to the impact of quantitative easing in boosting lower quality stocks.

“Our investment processes have proved their ability to deliver attractive returns to our investors over the long term and we continue to believe that this strict adherence to process will be rewarded as QE is withdrawn and there is a return to an increased focus on company fundamentals.”