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(Sharecast News) - Liontrust Asset Management saw net outflows slow in the second quarter, the active fund manager confirmed on Wednesday, despite a "prolonged, challenging" period for the sector.
Updating on trading, Liontrust said net outflows totalled £459m in the three months to 30 September. However, that was a notable improvement on the same period a year ago, when net outflows were £1.2bn. Assets under management and advice totalled £24.1bn, broadly flat over the period.
John Ions, chief executive, said: "Liontrust has continued to develop and diversify the business over the last quarter, while retaining the distinctive active investment culture at the heart of the company, as we pursue our growth strategy.
"We are encouraged by the improvement in the investment performance over the past six months, and the progress we are making in enhancing distribution both internationally and in the UK. As a result, net outflows between 1 April and 30 September were significantly lower than in the first half of the last financial year."
Last month Liontrust announced it would acquire the fund management and model portfolio services business of Hawksmoor Fund Management and Hawksmoor Investment Services. The firm said the deal, which is expected to add around £1.9bn of AUMA, was set to close by the end of December.
Ions concluded: "Liontrust has used the prolonged challenging period for active fund management to build a stronger business with a more diversified investment capability, broader distribution and enhanced infrastructure."
As at 1430 BST, the shares were down nearly 4% at 284.5p.
Berenberg, which retained its 'buy' recommendation on the stock, said: Despite challenging market conditions in the second quarter, given the generally weak investor sentiment, as well as the departure of a fund management team, Liontrust's net outflows continued to improve.
"We make further amendments to reflect the expected positive contribution from Hawksmoor in our forecasts, which more than offsets a further revenue margin reduction in the underlying business. We continue to believe that the current valuation is overly pessimistic with regard to the medium-term outlook."
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