Liontrust Asset Management (LIO) on Wednesday acknowledged that is core investment strategies have been “out of favour” due to high interest rates globally.
In a trading update covering the financial year to March 31, 2024, the London-listed fund manager said that its core strategies such as quality growth, small/mid-caps and UK equities funds have struggled in the high interest rate envirobment. But chief executive officer John Ions pointed to inflows into its European Dynamic fund as well as the performance of its Global Technology fund and its sustainable investing strategies.
He added that “as market sentiment changes, Liontrust is well positioned to benefit”.
Liontrust Yearly Net Outflows
It reported net outflows of £1.21 billion in the fourth quarter of its financial year, which ended on March 31. This left assets under management and advice (AUMA) down 12% on a year before at £27.8 billion. Compared to December 31, AUMA was marginally higher, thanks to £1.22 billion in positive market and investment performance.
AUMA has slipped marginally since start of the new financial year, down to £27.6 billion as of Friday last week.
Liontrust suffered £3.21 billion in net outflows in the first half of its financial year and £1.66 billion worth in the third quarter, meaning net outflows exceeded £6 billion in its recent financial year.
In August, Liontrust admitted that its offer to buy Zurich-based peer GAM Holding AG had been unsuccessful as it was supported by only a third of GAM shareholders.
Liontrust shares were up nearly 7% to 681p pence early Wednesday in London.
