Liontrust reports fall in assets under management in Q3

Liontrust Asset Management reported net outflows of £1.6bn in its third quarter on Wednesday, after combination talks with GAM ended.

The FTSE 250 firm said that as of 30 September, its total assets under management and advice (AuMA) stood at £27.7bn, reflecting a decline of 6.3% throughout the quarter.

Additionally, it said its AuMA figures as of 12 October had retreated further, to £27.5bn.

“After more than a decade of significant growth for Liontrust, the past year or so has been more challenging,” said chief executive officer John Ions.

“Like many other asset managers, Liontrust continues to face the headwind of current investor sentiment.

“Liontrust has been impacted by our bias towards equities, the quality growth style, mid and small caps and the broad negative sentiment towards the UK - the UK All Companies sector has been the worst net selling retail sector in the UK for six of the past seven quarters, according to the Investment Association (IA).”

Ions said the proposed acquisition of GAM would have accelerated Liontrust’s strategic objectives but added that without GAM, those objectives were not changing and the company’s belief in them had strengthened.

“The knowledge and insight gained through the GAM process is also helping us shape our future operating model for the long-term growth of the Liontrust business.

“This will lead to restructuring and efficiencies in some areas of the business.

“Our flexible remuneration model for fund managers and other staff remains unchanged in light of the headwinds we are facing; in particular, the revenue share model for fund managers ensures they are fully aligned with the business and investors.”

At 0819 BST, shares in Liontrust Asset Management were down 1.18% at 545p.

Reporting by Josh White for Sharecast.com.