Liontrust reveals new global team as £500m walks out the door

£5.1bn AUMA boost from Majedie acquisition nearly offset by net outflows and challenging investment performance

John Ions Liontrust

Liontrust ended Q2 with assets under management and advice of £34.5bn, an increase of £700m from the previous quarter.

Over the three months to 30 June, it recorded net outflows of £541m, with market and investment performance headwinds knocking £3.9bn off its end of quarter AUMA.

The FTSE 250 fund group was only able to record a gain thanks to its acquisition of Majedie Asset Management, which completed on 1 April and added £5.1bn in assets.

The biggest new outflows were in Liontrust’s UK retail funds and MPS division, which lost £337m in the quarter, while its international funds and accounts bled £266m. The only division to report net inflows was alternative funds, with £119m added.

Liontrust chief executive John Ions (pictured) said: “This continues to be a challenging year for investors, especially those who have a bias towards growth stocks. Despite the ongoing war in Ukraine and inflationary pressures, supply chain issues and strains on economic growth, we remain confident about the long-term prospects for our investment teams and their processes, along with the quality companies they hold within their portfolios.

“Liontrust has not been immune to this environment in terms of both performance and net flows. We continue to focus on what we do well and what has made Liontrust so successful. At the core of this are the rigorous investment processes, along with the strength of our sales and marketing, client communication and brand.”

See also: Liontrust assets hit £34bn in Q1 despite uptick in outflows

Management and structure changes

In a separate announcement, Liontrust revealed it had created a global innovation team, headed by James Dowey and Storm Uru and supported by Clare Pleydell-Bouverie.

All three joined Liontrust as part of its acquisition of Neptune Investment Management in October 2019.

With effect from 19 July, the global innovation team will be responsible for managing the £209m Liontrust Global Innovation and the £367m Liontrust Global Dividend funds.

They were previously run by Robin Geffen’s global equity team, which has also seen its Income and US Opportunities strategies moved to the global fundamental team, comprising the investment team that joined from Majedie.

Majedie co-founder Chris Field has replaced Geffen as lead manager of the £352m Liontrust Income fund, working alongside existing deputy manager James O’Connor, who has been on the strategy since November 2021.

No changes will be made to how the fund is managed. It invests in ‘dependable income stocks’, which are companies that exhibit three distinct characteristics: a structural growth proposition, competitive advantage and dividend growth.

The US Opportunities fund, which continues to be managed by George Boyd-Bowman, will also maintain its existing investment process. This is based on the belief that technological disruption will have a marked impact on global stock markets.

By moving to the global fundamental team, Boyd-Bowman will work alongside Hong Yi Chen, manager of the Liontrust GF US Equity fund.

See also: Liontrust rebrands European Growth fund

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