Liontrust hit by £3.2bn outflow as UK equities funds suffer

Assets under management fell 12% over the six months to £27.7bn.

John Ions


Liontrust has reported a net outflow of £3.2bn for the half year to the end of September.

Its assets under management fell 12% over the six months to £27.7bn.

The firm also reported gross profit down 9% on the same period last year to £98.6m, adjusted profit down 16% to £36m and adjusted earnings per share of 42p, down 21%. Performance fee revenue was £6m.

With acquisition and restructuring costs included, the firm slipped to a statutory loss before tax of £10.1m.

The update comes as the firm seeks to move on from the protracted and ultimately failed attempt to acquire Swiss asset manager GAM.

It also follows on from the integration of Majedie Asset Management, which has been a drag on performance due to its UK equities funds struggling under negative sentiment on the asset class.

Chief executive John Ions (pictured) commented: “This has been a challenging period for the asset management sector, including Liontrust. This is shown by the fact that the industry experienced net retail outflows in the UK in September of £1.4bn according to the Investment Association and asset managers only required net retail sales of £7.4 million in the UK in the third quarter of 2023 to make it into the top 10 list of sellers.

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“It is in this context that we need to view Liontrust’s net outflows and the impairment of recent acquisitions. The majority of Liontrust’s assets are invested in UK equities, which is an asset class that continues to be out of favour with investors. UK All Companies was the worst selling sector for net retail sales yet again in September 2023, with net retail outflows of £884m, which has been the case for 10 out of the past 11 months.

“Our focus is clear and we are committed to navigating the current headwinds and emerging with the business stronger than ever,” he said. “There are a number of areas we are prioritising to achieve our strategic objectives.”

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