London-listed fund management company Liontrust suffered £1.2 billion worth of net outflows in the three months to March 31 and more than £6 billion over 12 months, as stated in today’s trading update.
Assets under management and advice (AUMA) totalled £27.8 billion at the end of the period and declined further in the post period to a total of £27.6 billion as of 12 April.
Earlier this year, chief executive John Ions warned about “the ongoing negative sentiment among investors and the current challenges facing active asset managers”.
Active asset managers like Liontrust “have never been confronted by such a competitive environment to attract and retain assets as is the case now, both from within and outside the sector”, he said at the time.
Ions reiterated the challenges today, stating: “This follows a period in which many of our core investment strategies, notably quality growth, small/mid-caps and UK equities, have been out of favour, impacting both performance and flows.”
The European Dynamic Fund was a bright spot for Liontrust, with AUMA more than doubling to £1.4 billion over the 12-month period.
Assets held and managed in UK retail funds, which represent the bulk of Liontrust’s portfolio, fell from £25.7 billion to £23.8 billion
Looking forward, Liontrust stated: “We have put in place the structure to drive sales in the UK over the next few years and are investing in the expansion of our distribution globally.
“Liontrust has a strong brand in the UK and is seeking to build the same profile internationally. The broadening of our investment capability will also help to increase the client base.”
Company shares were trading 5.7% higher on Wednesday.