Net outflows reach £1.2bn at Liontrust

(Sharecast News) - Shares in Liontrust Asset Management came under pressure on Tuesday, after quarterly outflows topped £1.2bn. Updating on second-quarter trading, the specialist fund manager said net outflows in the three months to 30 September were £1.24bn, up on the £1.14bn recorded a year previously.

Assets under management and advice, meanwhile, eased 2.7% to £22.0bn.

John Ions, chief executive, said Liontrust was looking to capitalise on clients who wanted to diversify away from the US in favour of active management.

"We are having success among institutional investors and wealth managers, notably internationally. This includes new mandate as yet unfunded and being added to client's buy lists."

But he acknowledged: "This progress had been slower than we had hoped, however, leading to £1.2bn of net outflows in the last quarter, which were spread across spread across wealth manager, advisor and retail clients in the UK."

As at 0930 BST, shares in Liontrust were down 4% at 314.5p.

Looking forward, Ions acknowledged it had been a "challenging" period for flows.

But he concluded: "The outlook is becoming more positive for active management and Liontrust."

The firm is due to publish interim numbers on 20 November.

Berenberg, which has a 'hold' rating on the stock, said: "While near-term flows remain challenging to predict and we expect the business to remain in net outflows in the third quarter, we think Liontrust should be well positioned for when investor sentiment returns for the business's core strategies - for example, UK mid-cap and sustainability - with the asset manager operationally geared to benefit from a recovery in these areas."