Liontrust Asset Management (LSE:LIO) remains a 'sell' for Deutsche Bank, as continued investor withdrawals in May are souring gains from rising markets.
Baed on public filings, analyst Jonas Dohlen calculated that Liontrust recorded £200 million of trackable net outflows during the month, driven by redemptions from its Sustainable fund range.
Investment performance added an estimated £800 million, lifting trackable assets under management to £18.7 billion by 29 May.
Including non-trackable assets, primarily segregated mandates, Deutsche estimates total group assets under management reached £21.4 billion, representing a 9% increase from the £19.6 billion reported at the end of March and a 3% rise from the £20.8 billion disclosed on 20 April.
The figures suggest market performance remains the main driver of growth at the fund manager, with net flows still negative despite stabilising somewhat from heavier outflows seen in previous periods.
Deutsche Bank also estimated that Liontrust's non-trackable assets stood at £2.7 billion, including a previously guided mandate win worth about £500 million.
Looking ahead, the broker expects the planned River Global acquisition to contribute further assets. It estimates River Global managed £2.7 billion as of late May and forecasts about £100 million of Employee Ownership Trust-related inflows into Liontrust funds in August.
Deutsche's target price was raised to 190p from 170p, but given that this is versus the last closing price at 309.5p, Deutsche Bank maintained its negative recommendation.
