Liontrust: Outflows continue for money manager

Investors have continued to pull cash from asset manager Liontrust. In a trading update published this morning, the firm revealed that investors pulled £1.6bn from its funds in the last three months of the year.

The firm revealed that assets under management fell 5.3 per cent to £24.6bn at the end of 2024.

Markets had expected only a three per cent drop in assets over the quarter.

Liontrust suffered outflows across all areas of its business except alternative funds, which recorded £4m in new money. UK retail funds and managed portfolio services recorded £1.4bn in outflows.

However, market performance added £173m to overall performance.

Liontrust CEO John Ions reported that outflows from the firm had been “significantly concentrated in October,” with around 50 per cent of the cash lost during the quarter coming in the month before the Budget.

In November, the asset manager pledged to cut around 25 roles as part of a £4.5m cost saving programme , which would cost £4m in one-off implementation costs.

Today, Liontrust said it had made “progress” in the plan, and now expected the cost savings to come to around £6m, thanks to a further small reduction in roles and non-staff expenses.

However, the expected implementation costs for the plan have ticked up slightly to £4.5m.

Liontrust’s stock price has fallen by about two-thirds over the last year and is down more than 80 per cent from its peak in September 2021.

“We have continued to strengthen and develop our operating platform to make Liontrust more effective and efficient,” said Ions.

“Alongside our proven investment processes, market-leading brand, strong client relationships, communications and engagement, we are making further progress in achieving our strategic objectives of enhancing the client experience and outcomes, diversifying the fund range, broadening the client base, and strengthening our technological, data and digital capability.”

In the trading update, Liontrust also said it would be adopting the Financial Conduct Authority’s ‘ Sustainability Focus ‘ label for 10 of its funds, making up a total of £8.5bn in assets.