Liontrust Asset Management PLC (LSE:LIO) saw its shares fall 5% as it reported a further £1.6bn of net outflows in the first quarter of its financial year as investors continued to move money out of equity funds.
Assets under management and advice shrank 6% in the quarter to £29.5bn at the end of June 2023, down almost 14% since a year earlier.
In the second quarter, shareholders approved the £96mln takeover of Swiss-based rival GAM.
Liontrust chief executive John Ions said: “In a risk-off environment, our strong focus on equities has proved to be challenging, especially when the UK market has been out of favour.”
Industry data has shown UK investors pulled £662mln from equity funds in June, with Investment Association figures recording net negative retail sales equities funds for the year to the end of May.
“Our business is in robust health despite the current market environment,” argued Ions, adding that the acquisition of GAM will bring “the benefits of increasing investment talent; diversifying funds, asset classes and investment styles to offer more solutions to clients; broadening distribution across the world; and expanding the client base”.
He noted that GAM's largest shareholder, Silchester International, has announced it is tendering approximately 17.3% of GAM's share capital as it believes it is in the best interests of its clients to do so.
A new fund was launched in the period, the Liontrust GF Sustainable Future US Growth Fund, which seeks to take advantage of the opportunities for sustainable investment in the US, which Ions said was in response to client demand.
Liontrust shares fell over 5% to 673p on Friday morning, not far off the four-year lows seen last month.