Source - Alliance News

Liontrust Asset Management PLC on Wednesday reported that it has endured a ‘more challenging year’ so far, with outflows continuing and assets under management declining.

The London-based asset manager said assets under management and advice fell by 6.3% to £27.65 billion at September 30, from £29.51 billion at July 1. At October 12, AuMA retreated further to £27.5 billion.

Net outflows in the second quarter totalled £1.58 billion, easing from £1.65 billion in the corresponding quarter a year ago.

‘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. ‘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.’

Ions added that the proposed, but failed, acquisition of GAM Holding AG would have accelerated the firm’s strategic objectives, adding that the company will now restructure some areas of the business.

The FTSE 250 constituent first announced an all-share deal to acquire Zurich-based GAM in May, at the time valuing the company at fr.107 million, around £96 million. Liontrust said the offer was equivalent to fr.0.67 per share. GAM shareholders would have held just shy of a 13% stake in the enlarged firm. However, the offer was met with opposition from some of GAM’s shareholders. As a result, Liontrust formally declared its offer to buy GAM unsuccessful at the end of August.

Looking ahead, Ions said he had ‘great confidence’ in Liontrust’s outlook.

Shares in Liontrust were up 0.8% at 556.00 pence each in London on Wednesday morning.

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