Liontrust outflows continue to mount as AUMA sinks below £30bn
CEO John Ions noted the majority of the manager’s assets were invested in UK equities, an asset class that has long fallen out of favour with investors.
AUMA fell 12% over the first half of the financial year, down from £31.4bn to £27.7bn, a figure which has since fallen further to £26.6bn as at 9 November 2023.
CEO John Ions noted the majority of the manager's assets were invested in UK equities, an asset class that has long fallen out of favour with investors, to explain the hefty decline, while chair Alastair Barbour added there were inevitable «bumps, twists and turns» in a company's growth.
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«No company enjoys linear growth over many years,» he said. «While Liontrust has been going through a less comfortable part of the journey after delivering many years of rapid growth, the group has a robust strategy and a clear plan for how management intends to deliver it.»
The asset manager experienced outflows across every arm of its business, with UK retail funds and MPS suffering the heaviest investor redemptions at £1.8bn.
Alternative funds saw £748m withdrawn, while institutional, international funds and accounts, and investment trusts lost £524m, £148m and £33m to redemptions, respectively.
Despite this, Liontrust enjoyed £6m of performance fee revenue, up from nil in the same period last year, while adjusted profit before tax dropped to £36m, down 16% from £42.9m.
The firm also suffered a statutory loss before tax of £10.1m, compared with a profit of £14.1m in the same period last year, as charges related to acquisitions increased 60% to £46.2m.
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