Liontrust revenues jump 18% despite Trump and Brexit


Liontrust has seen its revenues jump 18 per cent in the six months to the end of September, despite a “challenging period” for fund management groups due to Brexit and the US election.

Revenues were £22m compared to £18.7m for the same period last year, while profit before tax jumped 16 per cent from £5.9m to £6.8m.

Assets under management stood at £5.7bn at the end of the period; however, the asset manager notes that that had slipped back to £5.6bn by the end of last week.

Net flows for the period were slightly down on the same period last year at £92m compared to £110m in 2015.

Chief executive John Ions says its acquisition of the European income business from Argonaut had come at a “challenging period for fund management groups”.

“The vote on 23 June in favour of Britain leaving the EU and the US Presidential election campaign have exacerbated significantly the political uncertainty this year and the industry has suffered negative sales of equity funds every month in 2016 among retail investors, with the UK All Companies sector being the worst net seller in six of the first nine months of the year.”

Ions also weighed in on the active versus passive debate saying the company was a “staunch” believer in the former while arguing that both strategies have their place.

“Passive investments have a key role to play in investors’ portfolios but, equally, so do highly skilled active fund managers who can generate outperformance over the long term by applying robust investment processes.”