Liontrust Asset Management will reduce staff numbers and close four sub-scale strategies over the coming months as part of £4.5m cost-saving measures.
Around 25 roles will be affected, the firm announced in its half-year results this morning (21 November),
Liontrust’s profits fell in the half-year to 30 September, in what CEO John Ions described as a ‘challenging period’ for active managers.
See also: MPS: Smaller-value clients face restricted access
The firm’s gross profit for the six-month period stood at £81.1m, down from £98.6m at the same point of last year.
Adjusted profit before tax was £25.8m, down from £36m in 2023.
Assets under management and advice fell £800m in the three months to the end of September, dropping to £25.2bn from £26bn.
Liontrust John Ions, CEO, said: “The last six months have continued the challenging period for active managers including Liontrust. There are a number of reasons, however, why we are confident that we are moving into a more positive environment and the outlook is improving.
“We are steadfast in our commitment to active management and to our partnership with clients through complementing their other strategies including passive investments.
See also: PwC: 81% of wealth managers are eyeing up consolidation or M&A
“The headwinds facing many of our investment strategies are now being replaced by tailwinds including lower inflation and interest rates. We are seeing improved performance across our funds and we continue to have a strong brand and client engagement.”
He added that the firm’s confidence is reflected in its share buyback scheme of up to £5m, to be carried out over the next four months.
Liontrust is also targeting a dividend of at least 72p per share for the end of the financial year on 31 March.
Funds
In terms of fund performance, 68% of Liontrust’s strategies were in the top two quartiles of their respective sectors over one year.
Liontrust also announced it will integrate its global fixed income team into its multi-asset division, effective at the start of 2025.
As part of the integration, the fixed income portion of the Liontrust multi-asset funds and portfolios, around £1.4bn in assets, will move from external investment managers to be managed by in house.
This story was written by our sister title, Portfolio Adviser
