Liontrust blames market movements as AUM falls

Liontrust has blamed stock market movements for a fall in its assets under management between April and September, but has reported a positive net inflow for the period.

In its trading update for the period 1 April 2011 to 27 September 2011, the group reported AUM of £1.179bn, down 6.13% from £1.256bn on 31 March this year.

The ‘Cashflow Solution’ investment process accounts for the most assets, with £765m under management across James Inglis-Jones and Gary West’s European and Income funds; followed by ‘Economic Advantage’, implemented on Anthony Cross and Julian Fosh’s UK funds.

Liontrust saw a new inflow of £45m in the quarter to date, its fifth successive quarter of positive net sales, and £58m over the reporting period, but market movements saw it lose a total of £175m between July and September.

The boutique intends to complete its acquisition of emerging market specialist Occam Asset Management in October, and will report its results for the six months ending 30 September 2011 on 23 November.

John Ions, chief executive, said: "The continuation of positive net flows has been a significant achievement given the recent challenging market environment and the uncertain economic outlook that impacts on investor confidence.

"There has been a further broadening of our client base, with inflows coming from a greater number of intermediaries and our funds being placed on more buy lists by wealth managers, discretionary managers and financial advisers. This has been a key part of our strategy to diversify our business.

"Another strategic aim has been to diversify into new asset classes, which we will do on completion of the acquisition of Occam. Asia and Emerging Markets will be two of the fastest growing areas over the long term and our distribution will be broadened through being able to offer these asset classes. Distribution will also be enhanced through the addition of Occam's international client base.

"The asset management industry is enduring a challenging time, with no sign of an end to the market and economic turbulence. Despite this, we are looking forward with confidence as we attract inflows through fund performance, enhanced awareness of Liontrust and our products and a broader and more proactive sales strategy."