Liontrust reported net outflows of £4.9bn over the year to 31 March 2025, amid a period of transformation for the business where it overhauled its operating model, distribution and expanded the fund range.
Net outflows were recorded at £4.9bn largely driven by retail investors, a core market for Liontrust. Assets under management (AUM) declined from £27.8bn in March 2024 to £22.6bn at the end of the recent financial year.
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Gross profits were down to £157.7m from £186.1m the previous year, and adjusted profit before tax stood at £48.3m for the past year, a decrease from £67.4m.
The group had embarked on some cost cutting with the full year report saying it “achieved cost efficiencies through a reduction of roles across the business”. This is expected to save £6m annually after one-off implementation costs of £4.5m.
Further, costs related to the failed acquisition of GAM in 2023 stood at £9,508.
Commenting CEO John Ions (pictured), said: “Client outcomes, experience and engagement are at the heart of everything we do at Liontrust. We have overhauled our operating model, enhanced distribution and expanded our fund range to strengthen our proposition as an active asset manager. We believe it will be more challenging for markets to generate the same level of returns in the next few years as over the past decade.
“This will lead to investors searching for alpha by moving away from passive vehicles to active asset managers, deeper within markets and on a more geographically diverse basis. These investment opportunities include generational low valuations among UK quality companies.
“Liontrust is well placed to take advantage of this new environment with our highly rated and independently recognised investment teams, high-profile brand, market leading client service, communications and marketing, and strong operations.”
Looking at the group’s AUM breakdown by investment process, sustainable investment funds are the largest fund range with £8.1bn, followed by the economic advantage products (£4.3bn) and multi-asset (£3.8bn).
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Preparing for the future
In terms of the business transformation, Liontrust said it has overhauled its operating model by implementing BlackRock’s Aladdin platform, and outsourced numerous functions to BNY, including front and middle office services. The group also outsourced factsheet and regulatory reporting in 2024.
On the distribution team, which has also been overhauled, Kristian Cook has been appointed head of global distribution overseeing UK and international sales.
“This ensures a consistency of client service across markets, strengthens campaign co-ordination, and enables the growth of the institutional client base worldwide,” Ions said. “Our international distribution has been further strengthened by key hires in Switzerland, the Middle East and Asia.”
Finally, in terms of expanding the fund range, Liontrust added the Global Alpha Long Short fund, managed be Mark Hawtin and team, to its product suite, and launched the Pan-European Dynamic fund, as well as international versions of the Global Dividend, Global Innovation and Global Technology funds.
“Liontrust is well positioned to take advantage of opportunities for active asset managers and our investors in a rapidly evolving environment,” commented Ions.