Liontrust looks to positive times for UK asset managers

LONDON (Reuters) – Liontrust Asset Management reported a 2.8% fall in assets under management and advice (AUMA) to 27 billion pounds ($35 billion) in the second quarter on Wednesday, despite stemming net outflows to 900 million pounds over the period from 1.6 billion pounds a year ago.

Pointing to lower rate and inflation expectations, Chief Executive John Ions said Liontrust was well placed to benefit from an “improving environment” for financial markets, which he said should encourage international investors to invest more in Britain.

“Labour’s large majority in last week’s general election should herald a period of stability that will be positive for financial markets,” Ions said in a statement.

“It is encouraging that the new government has a pro-growth agenda and is committed to the simplification of pensions,” he added, suggesting that a retirement savings push would “significantly improve the outlook for asset managers.”

Analysts at Panmure Liberum said the company’s “direction of travel is changing for the better.”

“Inevitably, slower outflows are needed en route to inflows,” Panmure Liberum said in a note to clients, adding that the three months to June 30 represented the firm’s best flows performance since Q3 2023, with June appearing much stronger than April or May.

Liontrust’s Investment Trusts, Alternative Funds and International segments all reported higher AUMA at June 30, versus April 1 figures.