LONDON (Reuters) – Liontrust Asset Management saw a 2.8% decrease in assets under management and advice (AUMA) to £27 billion ($35 billion) in the second quarter of the year. Despite this decline, net outflows were reduced to £900 million from £1.6 billion compared to the same period last year.
CEO John Ions attributed the decrease to lower rate and inflation expectations. He remains optimistic about the future, stating that Liontrust is well positioned to benefit from an improving financial market environment, which he believes will attract more international investors to the UK.
“The recent general election in which Labour secured a significant majority should bring about a period of stability that will have a positive impact on financial markets,” Ions commented in a press release.
He also praised the new government for its pro-growth agenda and commitment to simplifying pensions, stating that these initiatives will enhance the prospects for asset managers.
Analysts at Panmure Liberum shared a positive outlook on the company, noting that the trend is shifting in a favorable direction. They emphasized the importance of reducing outflows and transitioning towards inflows, highlighting the strong performance of Liontrust in the second quarter of the year.
Liontrust’s Investment Trusts, Alternative Funds, and International segments all reported higher AUMA as of June 30 compared to the beginning of April.