Failed GAM bid 'will lead to restructuring' as Liontrust outflows mount

investmentweek.co.uk:

Liontrust CEO John Ions

Writing in its three-month trading update to 30 September 2023, Liontrust CEO John Ions reflected on the attempted M&A move, arguing while the acquisition would have «accelerated» the firm's strategic objectives of broadening its fund range and expanding geographical distribution, the failure does not change these goals.

Liontrust bid fails as GAM enters discussions with shareholder group NewGAMe

«Our belief in them has only strengthened,» he wrote. «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.»

Ions stated the lessons gained from the process will result in «restructuring and efficiencies in some areas of the business», while confirming its «flexible remuneration model» will remain unchanged.

«As one leading analyst has said, the absence of a step forward is not the same as a step backward,» he added.

Assets under management and advice fell a further 6.3% over the quarter, down to £27.7bn at 30 September 2023, which has since dropped to £27.5bn on 12 October.

Net outflows of £1.6bn were felt across the board, with retail, investment trusts, institutional, alternatives and international funds all seeing a decline.

Over six months, AUMA has dropped 12%, largely owed to £3.2bn of net outflows, accompanied by market and investment performance losses of £567m.

Sustainable investment remained the largest sole arm of Liontrust, representing more than a third of the business with just shy of £10bn in AUMA.

This was followed by economic advantage (£7.1bn), multi-asset (£4.5bn) and global fundamental (£3.5bn).

Questions raised over 'management credibility' as Liontrust fails to buy GAM

Ions