Liontrust Asset Management ups profit outlook as fee levels rise

Liontrust Asset Management’s annual profits are on track to come in ahead of forecasts on a jump in fee income, despite a ‘challenging’ year for the sector. 

The fund management group saw net outflows reached £4.8billion in the year to March, compared to £2.5billion the previous year, as assets under management and advice fell by 3.6 per cent to £31.4billion, the group told investors on Wednesday. 

But Liontrust said adjusted pre-tax profits would not come in at less than £86billion, ahead of forecasts. 

In charge: John Ions is the chief executive of Lion Asset Management 

Profits were bolstered by stronger-than-expected fee revenues of around £17billion, compared to £12.6billion the previous year.

On Tuesday, Liontrust confirmed that it was in discussions regarding a proposed acquisition of Zurich-based asset manager GAM.

The group said: ‘Liontrust confirms it has made an approach to the Board of GAM. 

‘There can be no certainty that this will lead to 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, any such Proposed Acquisition would be completed.’

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

Liontrust shares fell today and were down 7.22 per cent or 67.45p to 867.05p this afternoon,  having fallen over 28 per cent in the last year. 

Today, John Ions, the group’s chief executive, said: ‘It has been a challenging year for Liontrust in terms of net outflows and mixed performance for our funds. 

‘But this has to be set against a backdrop of the industry in aggregate suffering UK retail net outflows in ten out of the 12 months last year.

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

‘The business as a whole is operating well and we will continue to broaden our products and distribution channel.’