Liontrust Asset Management has suffered £6.1bn in net outflows over the financial year to the end of March 2024, according to its latest trading statement published today (17 April).
This marks a 25.6% increase in outflows compared to last year’s figures, with some £4bn of investors’ money leaving the firm’s UK retail funds and managed portfolio services during the 2023 financial year. A further £925m left institutional accounts and funds, while alternatives funds and international funds and accounts lost £821m and £246m respectively. Liontrust’s investment companies saw outflows of £92m.
Assets under management and advice therefore shrunk from £31.4bn to £27.8bn – an 11.5% decline. This is despite the fact positive market and investment performance contributed a net £2.5bn to assets.
A total of eight out of 36 Liontrust funds and investment trusts achieved top-quartile total returns relative to their sector average over three years to the end of the financial year, while seven found themselves in the second quartile. A total of 10 funds found themselves in the bottom 25% of the performance bracket over three years.
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Over the last quarter alone, Liontrust has suffered £1.2bn of outflows while assets ticked up marginally. A majority of outflows over this time frame came from the firm’s institutional accounts and funds at £1.2bn, followed by its alternative funds at £872m.
John Ions (pictured), chief executive officer, said: “We start the new financial year with confidence to drive the business forward after the challenges of the last 18 months.
“Liontrust has improving investment performance in the short term as well as excellent performance over the long term and it appears the UK and other developed economies have reached peak interest rates.
“This follows a period in which many of our core investment strategies, notably quality growth, small/mid-caps and UK equities, have been out of favour, impacting both performance and flows. This led to outflows of £1.2 billion over the three months to 31 March 2024.”
He added the firm has made “continued progress” against its strategic objectives, which are: to enhance the client experience and outcomes; diversify Liontrust’s product range and investment offering; broaden its distribution and client base; and improve its technological, data and digital capability.
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“We have also restructured the UK sales team, including the appointment of Kristian Cook as head of UK distribution, Mark Wright as head of UK regional distribution and Sophie Andrews joining in June from Franklin Templeton as head of strategic partners and consolidators,” Ions continued. “Since the start of 2024, there has been substantial activity with clients for the Economic Advantage, Sustainable Investment, Global Innovation and Multi-Asset investment teams in particular and strong client engagement with our communications.
“The leadership team at Liontrust has been strengthened to help drive the future growth of the business. [chief strategy officer] David Boyle, [COO] Edward Catton, [CRO] Martin Kearney and [company secretary] Sally Buckmaster have all taken on greater responsibility to support Vinay and I and the rest of the senior leadership team.
“Liontrust is investing in our technology, data and digital infrastructure which will improve the efficiency of the business and operations and enhance the experience of our clients. These projects will start bearing fruit during 2024.”
