Today’s trading update shows investors have continued withdrawing cash from the firm’s portfolios.
Some £923m was removed from Liontrust funds by investors in the three months to 30 June, according to the asset manager’s latest three-month trading update.
This is despite positive performance for the firm’s funds as a whole, with investment performance adding £139m over the period. It leaves Liontrust with total assets under management (AUM) of £27bn, down from the £27.8bn it held on 1 April.
This marks a decline of 2.8% for the period, with most of the net outflows coming from the UK retail fund and managed portfolio channel, where investors pulled £772m.
However, outflows are slowing. Indeed, the £923m over the past three months was less than the £1.6bn removed during the same period in 2023.
Liontrust’s Sustainable Investment team runs the most money, with £9.9bn in AUM, followed by the Economic Advantage team (£6.3bn) and Muti-Asset range (£4.1bn).
John Ions, chief executive officer at Liontrust, said the firm could be in a good position going forward, particularly after the latest general election result, as he believes the outlook for UK-based asset managers is set to improve
“Labour’s large majority in last week’s general election should herald a period of stability that will be positive for financial markets. It is encouraging that the new government has a pro-growth agenda and is committed to the simplification of pensions,” he said.
Alongside falling inflation and expectations of interest rate cuts, this may be enough to finally encourage international investors back to the UK and arrest the years of consistent outflows by domestic investors.
“Given the ever-increasing need for individuals to save more for their retirement as well, this will significantly improve the outlook for asset managers,” he said.
“Liontrust is well placed for this improving environment as we have a strong brand, distribution, robust investment processes and a leading reputation for managing UK equities.”
