Liontrust’s assets under management and advice (AUMA) fell to £31.7bn as of the end of September 2022, down around 7.5% from £34.3bn at the beginning of July.
As of 14 October, AUMA has fallen to £31.2bn, a drop of 9% from July’s figure.
In the three months to 30 September, AUMA fell £2.6bn, as outflows of £1.6bn combined potently with poor market performance. The vast majority of those outflows came from the firm’s UK retail funds and MPS, from which investors pulled just over £1bn.
With regards to the asset manager’s performance during the six months to 30 September, the acquisition of Majedie Asset Management in April papered over cracks in some areas, largely in institutional accounts and investment trusts. In all, the acquisition brought a total of £5.2bn of assets under Liontrust’s umbrella. As a result, the quarter ending 30 June actually saw growth in AUMA, from £33.55bn on 1 April to £34.25bn on 1 July.
However, the six months to 30 September as a whole saw net £2.2bn withdrawn from the FTSE 250 fund manager’s strategies, and this was exacerbated by a loss of £4.8bn due to the trying market conditions. As a consequence, AUMA for the period dropped 5.5%.
The firm’s UK retail funds and MPS make up the lion’s share of the firm’s assets under management and advice, and unsurprisingly they took the largest hit. AUMA in this area dropped from £30.1bn on 1 April to £25.8bn by 30 September, a fall that was only partially offset by the addition of £878m from Majedie’s funds in this particular sector.
Only Liontrust’s alternative funds experienced positive net inflows across the six-month period, with £540m being added to the pot. An injection of £395m came from the Majedie acquisition, and net £172m of client money flowed in. Only £27m was lost as a result of poor market and investment performance.
Of its 38 UK funds, 28 were ranked in the third or fourth quartile for performance in the last year. Nine were in the first quartile, including the Liontrust UK Growth and Liontrust UK Smaller Companies funds.
John Ions (pictured), CEO of Liontrust, said: “Despite the challenging period for markets and Liontrust that we have been experiencing this year, I am confident about the strengths of our business and the long-term value we can offer clients. We have rigorous processes across the business to enable us to achieve our long-term strategic objectives and create opportunities for growth.
“After decades of low inflation and cheap liquidity, we have entered a new environment for investors. In the future, successful asset managers will be those that excel at distribution, have a strong brand and are innovative at product development for multiple distribution channels, in addition to strong investment management.”
He continued: “The recent acquisition of Majedie focused on its institutional investment capability and client base. Combining these with a strong brand and product development capabilities provides a firm foundation for future growth.
“Looking ahead, we will continue to focus on expanding our sales by funds, geographies and clients. With the excellence of our investment teams, distribution and brand, underpinned by our strong balance sheet, Liontrust is well positioned to generate future growth.”