Liontrust AUM up despite ‘tough’ times for UK equities


Liontrust Asset Management has seen AUM increase 19 per cent in the six months to the end September, despite net retail outflows in the last quarter in a “tough environment” for UK equity sales.

AUM was £5.7bn compared to £4.8bn at the end of March.

Retail flows totalled £4m for the six-month period, but over the most recent quarter the asset manager saw outflows of £33m.

Chief executive John Ions noted that including institutional money net flows were positive for the quarter totalling £26m “at a time of political and economic uncertainty and a tough environment for selling UK equity funds”.

“UK All Companies was the worst selling sector by net retail sales in February, March, April, May and July 2016, according to the Investment Association.

“Equity funds in general have suffered negative net retail sales in every one of the first eight months of 2016.”

Ions says the acquisition of Argonaut’s European Income business has diversified the business and enhanced its equity income franchise.

“The Asia Income and Macro Equity Income funds offer historic yields of 4.45 per cent and 4.47 per cent respectively while the European Income and European Enhanced Income funds have target yields of 4.1 per cent and 4.4 per cent respectively.

”This broader range of fund management capability and strong fund performance gives me confidence that we will continue to grow the business over the rest of the financial year.”