Liontrust Asset Management’s assets under management and advice fell by 6% in the financial year to March 2023 due to net outflows of £4.8 billion as the UK firm proceeds with its acquisition of GAM.
In comparison, Liontrust recorded inflows of £2.5 billion in the same period in 2022. Assets under management and advice fell from £33.5 billion to £31.4 billion.
Adjusted profits before tax decreased by 10%, from £96.6 million to £87.1 million, with adjusted diluted earnings per share declining 14% to 109.8 pence per share.
Overall, gross profits fell from £1 million to £230 million.
Liontrust is acquiring Swiss firm GAM for a consideration of £96 million, which would create a group with £53 billion in assets under management.
Earlier this month, GAM investors called for an extraordinary general meeting to overhaul the board following this offer.
The request came from a group of shareholders – including Newgame SA and Bruellan SA – who argued the £96 million offer from Liontrust undervalues the business.
The requested date for the meeting is August 16, when the shareholders are expected to argue the deal undervalues the company and attempt to replace the board that accepted the terms.
The group is also proposing Bruellan executive partner Antoine Spillmann should chair the board.
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