Liontrust Asset Management ups profit outlook as fee levels rise

Liontrust Asset Management’s annual earnings are on track to outperform forecasts of a jump in fee income, despite a “challenging” year for the industry.

The fund management group saw net outflows of £4.8bn in the year to March, compared to £2.5bn last year, while assets under management and advice fell 3.6 per cent to £31.4bn, it said. the group to investors on Wednesday.

But Liontrust said adjusted pre-tax profit would be no less than £86bn ahead of forecasts.

Earnings were supported by stronger-than-expected fee income of around £17bn, compared to £12.6bn last year.

Liontrust confirmed on Tuesday that it was in talks about a proposed acquisition of Zurich-based asset manager GAM.

The group said: ‘Liontrust confirms that it has approached GAM’s management.

“There can be no assurance that this will result in a formal offer in respect of the Proposed Acquisition, nor as to the timing or terms of any such offer and there can be no assurance that, even if agreement is reached, such Proposed Acquisition would be completed.”

The proposed acquisition would see Liontrust combine GAM’s asset management business with its own.

Liontrust Shares were down today and are down 5.74 percent or 53.62 points this morning to 880.88p, after falling more than 27 percent in the past year.

Group CEO John Ions said today: ‘It has been a challenging year for Liontrust in terms of net outflows and mixed performance for our funds.

“But this should be seen against the background that overall the industry suffered net outflows in the UK retail sector in 10 of the 12 months last year.

Despite these headwinds, Liontrust has delivered an impressive financial performance.

“The business as a whole is doing well and we will continue to broaden our products and distribution channel.”