Liontrust reports solid year after fourth quarter outflows
Liontrust Asset Management reported net outflows of £0.4bn in its final quarter on Tuesday, with net inflows totalling £2.5bn for the financial year ended 31 March.
The FTSE 250 company said assets under management and advice totalled £33.5bn as at 31 March - an increase of 8.5% over the financial year.
It completed the acquisition of Majedie Asset Management just after the financial year ended, on 1 April, adding £5.2bn to assets under management and advice.
That took Liontrust's pro forma assets under management and advice to £38.7bn, while the board said the Majedie investment team had been renamed the Liontrust Global Fundamental team.
Total group assets under management and advice as at 7 April were £38.5bn.
“Our teams' investment processes have been performing as we would expect given the market environment of the past few months, and the fund managers remain confident about the long-term prospects for the companies in their portfolios,” said chief executive officer John Ions.
“During times of such market sell-offs, the fund managers are presented with opportunities to add to their stocks at cheap valuations and buy into companies they have liked but that previously did not offer attractive entry points.
“While we had net outflows of £0.4 billion in the three months to 31 March 2022, over the whole financial year, Liontrust generated net inflows of £2.5 billion and delivered positive sales at the start of the new financial year.”
Ions said the largest negative impact on net flows in the last quarter was the loss of the £329m investment management mandate for the Verbatim Funds.
“The net outflows of the past quarter do not alter our belief in and focus on the long-term strategy of the business.
“Liontrust has continued to diversify and expand our investment capability and the business, and ensured we deliver for and engage with our investors.”
The acquisition of Majedie had continued the company’s diversification and expansion, John Ions added, both through distribution to institutional investors and investment capability, as well as adding £5.2bn to assets under management and advice.
“Majedie also brings excellent client service, which is reflected in the strength of their relationships.
“The investment managers, who have been rebranded as the Liontrust Global Fundamental team, are highly regarded, which is demonstrated by the quality of their institutional mandates and the management of Edinburgh Investment Trust since March 2020.”
Ions said he had “strong conviction” in Liontrust’s investment teams, their processes and their ability to continue to deliver for investors over the long term.
“I also have great confidence in Liontrust and our business processes to maintain long-term growth and deliver for employees, shareholders and other stakeholders.
“The acquisition of Majedie and our continued investment in the business to enable us to engage meaningfully with investors reinforces this belief.”
At 1013 BST, shares in Liontrust Asset Management were up 1.18% at 1,260.68p.