Liontrust CEO says results debunk ‘squeezed middle’ narrative

Liontrust Asset Management chief executive John Ions has argued asset managers do not have to be a boutique or a global player to generate growth as the company’s annual results show inflows almost doubling to £482m.

Assets under management were £6.5bn at the period ended March up 36 per cent from £4.8bn a year earlier.

Adjusted profit before tax increased 18 per cent to £17.2m compared to £14.6m a year earlier.

Ions says the full year results show a seventh successive year of positive net flows. Inflows increased 89 per cent from £255m last year.

“There has been much discussion about the squeezed middle in the asset management industry. Companies either have to be global players or niche boutiques to survive and prosper, so goes the argument. We believe this is a simplistic and incorrect view of the development of the market.

“Liontrust is not alone in showing that you do not have to be a boutique or a global group to be able to generate growth year after year. We have also delivered value for our investors through strong fund performance over the long term.”

While revenues were up 15 per cent to £51m from £45m last year performance fee revenues almost halved from £7.4m to £4m.

In the period since the results, the completion of the acquisition of Alliance Trust Investments completes has added £2.5bn in assets taking total AUM to £9.3bn.