Liontrust swings to interim loss as outflows top £3bn

Liontrust Asset Management swung to an interim loss in the six months ended September 30 as it reported increased outflows and substantial costs relating to its acquisition of Majedie Asset Management.

The fund manager reported a pretax loss of £10.1m in the first half of its financial year, compared to a profit of £14.1m the year prior.

It recorded charges of £46.2m relating to its recent acquisitions and the associated restructuring costs. Of this, £8m was related to the firm’s failed acquisition of Swiss asset manager GAM.

Net outflows totalled £3.2bn at the end of September, compared to £2.2bn a year prior. Assets under management dipped 12 per cent to £27.7bn.

Chief Executive John Ions said it had been a “challenging” period for the asset management sector and said the results needed to be viewed within that context.

“The majority of Liontrust’s assets are invested in UK equities, which is an asset class that continues to be out of favour with investors. UK All Companies was the worst selling sector for net retail sales yet again in September 2023…which has been the case for 10 out of the past 11 months,” Ions said.

Despite the poor interim results, Liontrust maintained its dividend at 22p and said it remained optimistic for the future.

Shares in Liontrust were down 1.9 per cent in London on Thursday morning.

Peel Hunt said the long-term potential outlook for Liontrust was “undiminished” despite the swing to a half-year loss. The broker retained its buy rating on the stock and predicted only a modest three per cent fall in adjusted pretax profit for the full-year.