Asset manager Liontrust suffered £4.8bn net outflows in the year to 31 March 2023, a mammoth £7.3bn reverse from the £2.5bn attracted during the previous financial year.
The bulk of the outflows came in the firm’s retail and MPS strategies, which saw investors pull £3.2bn. Institutional accounts and funds leaked £1.1bn, while alternative funds attracted inflows of £274m.
This fed into assets under management and advice (AUMA) sliding 6% to £31.4bn, having started the period at £33.5bn.
See also: Liontrust agrees to buy GAM for an ‘extraordinarily cheap’ £96m
AUMA was also impacted by a loss of £2.4bn to market and investment performance, while it gained £5.1bn from the acquisition of Majedie Asset Management.
Liontrust chief executive John Ions (pictured) said: “We are focused on ensuring the future growth of Liontrust. The business is in strong health despite the challenges of the past year and we are seeking to build on this through the proposed acquisition of GAM Holding AG to accelerate the strategic aims of Liontrust becoming a specialist global investment manager.”
He added: “While outflows have continued into the current financial year, I am confident we are continuing to do the right things and the dedication and commitment of everyone at Liontrust will reap its rewards in the future.”
Adjusted profit before tax fell 10% to £87m, compared to the £96.6m recorded in FY22.
The firm kept its dividend at 73p per share.
GAM takeover deal pushes forward
The results come as Liontrust continues to push forward with the proposed acquisition of GAM.
Despite being backed by the Swiss asset manager’s board and senior portfolio managers, the offer has come under opposition from investor group NewGAMe and Bruellan who own 9.2% of GAM.
The firm published the deal prospectus earlier in June, which confirmed details such as the exchange ratio of 0.0589 Liontrust shares for each GAM share. It also set out a timetable for the offer of 28 June to 25 July.
See also: Liontrust stake weighs on Majedie Trust’s performance
