Liontrust commits to pay for research as profits climb 61%

Liontrust profits have climbed 61 per cent from last year in its half yearly results for the period ended 30 September, while the group commits to absorb research costs under Mifid II from January next year.

Assets under management at the end of the period were £9.6bn, but have since reached £10.1bn. Revenues have increased 57 per cent from the same period last year to £35m.

The asset manager expects the cost from absorbing research will be £1m to £1.5m.

Chief executive Jon Ions says the group recorded strong inflows despite the fact UK All Companies has been the worst selling sector by net retail flows in seven of the past 13 months to the end of September 2017, according to the IA.

Inflows almost doubled to £178m compared to £92m a year ago.

Ions highlights the record of Anthony Cross, who has returned 1,121 per cent against 282 per cent by the FTSE Small Cap index and 612 per cent by the average fund in the IA UK Smaller Companies sector.

Ions also highlighted the additional £2.5bn AUM added from the acquisition of Alliance Trust Investments, which has now been rebranded as part of the group.

“Sustainable investing is grabbing a lot of headlines, and with our team having critical mass and a long track record this puts us in an enviable position to benefit from the growth,” says Ions.