Liontrust suffers £432mn outflows after losing mandate

Liontrust suffers £432mn outflows after losing mandate

Liontrust has suffered net outflows of nearly half a billion in the three months to the end of March after losing an investment mandate for a range of funds.

The asset manager saw redemptions of £432mn, of which £329mn was due to the termination of the investment management agreement for the Verbatim growth funds.

The Verbatim funds were acquired by Tatton AM in September last year for £5.8mn.

The outflows are in comparison with net inflows of £958mn in the same period last year.

Net inflows for the year to March 31 were £2.5bn, the company said, compared with £3.5bn the previous year, and the group saw positive sales at the start of the new financial year.

Over the year, the group saw £3bn in UK retail flows, however its multi-asset team saw net outflows of £541mn.

Liontrust's multi-asset team has been reshuffled since the company began to integrate the Architas business it purchased for £75mn in 2020.

The assets the team manages have dropped from £7.4bn at the end of 2020 to £6.6bn at the end of March this year.

John Ions, chief executive of Liontrust, said the net outflows of the past quarter do not alter his belief in and focus on the long-term strategy of the business. 

“Liontrust has continued to diversify and expand our investment capability and the business, and ensured we deliver for and engage with our investors.”

The company saw its assets under management and advice rise 8.5 per cent to £33.5bn in the year to March 31.

This does not include the assets under the management of Majedie Asset Management, Liontrust’s acquisition of which completed on April 1. This deal added £5.2bn in Aum, taking Liontrust’s Aum to £38.7bn.

Ions said the acquisition has continued the group’s diversification and expansion.

“Majedie also brings excellent client service, which is reflected in the strength of their relationships,” he added.