Liontrust posts £2.2bn in outflows but CEO optimistic

Liontrust posts £2.2bn in outflows but CEO optimistic

Investors redeemed £1.3bn from Liontrust’s retail funds and managed portfolio service in the six months to the end of September, with poorly performing markets contributing to a further £3.9bn of a loss in value for the assets.

In an interim results statement to the stock exchange today (November 18), the asset manager’s chief executive, John Ions, said the company expects the current volatility in markets to continue, but is optimistic about the future.

“The company is financially strong, investment processes are robust, the brand profile is high and positive, and there is extensive client engagement,” he said.

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Total net outflows were £2.2bn, compared with £2.1bn of inflows in the same period in 2021, and total assets under management on November 14 were £33.5bn.

The acquisition of Majedie Asset Management, which completed in April this year, added £5.1bn to Liontrust’s total assets under management.

Ions said acquisitions remain a “key part” of the company’s objectives to expand its distribution and products to diversify its business.

“Consolidation presents opportunities for Liontrust to buy businesses that have not achieved the required brand profile and breadth of distribution to prosper, even when they have strong investment management capability,” he said.

Ions said the Majedie acquisition enhanced its product range, including the Edinburgh Investment Trust, as well as enhancing its institutional distribution capability.

“Diversifying our distribution internationally will play a key role in delivering future growth for Liontrust, both in Europe and beyond. 

“A broader fund range and product mix, including alternatives, and increasing our number of strategic partners will help drive this,” he said.

Liontrust posted a pre-tax profit of £14.1mn, a 55 per cent drop on the equivalent period in 2021.

The asset manager said this included costs of £28.8mn relating to acquisitions and associated restructuring costs, and adjusted pre-tax profit was £42.9mn, a 10 per cent increase on the 2012 figure.

It will pay a dividend of 22p per share.