UK asset manager Liontrust has blamed uncertainty over the UK’s budget as the reason for a fall in the firm’s assets under management (AuM) during the latest quarter.
Investors pulled £1.1 billion from its funds between July and September. Outflows were experienced across all asset classes but were highest for UK retail funds and managed portfolio services which collectively saw a £904 million outflow.
The outflows meant that Liontrust’s AuM fell to £26 billion, £5.7 billion lower than the previous year and a 4% decline year-on-year.
As of Thursday morning, Liontrust’s share price had dropped a further 3% as a result of the trading update meaning that the company’s shares were down 12% for the year and 19% for the last six months.
The firm’s chief executive John Ions has attributed the outflows to “speculation and uncertainty” from investors ahead of the first budget announcement of a new Labour government.
“The speculation and uncertainty around changes to taxation and reliefs in the lead up to the budget on 30 October have impacted investor confidence and fund flows for the whole industry including Liontrust,” he said.
Liontrust’s AUMA and profits fall
“This has contributed to another quarter of net outflows as the challenging environment for active managers has continued for longer than anticipated.”
Liontrust suffered £6.1 billion in net outflows during the previous financial year from March 2023 and has so far seen £2.1 billion in outflows for the first half of this financial year.
