Liontrust posts 28% drop in pre-tax profits as investors shun London
The pressure on Britain's active fund management industry has fuelled a sharp fall in profits at Liontrust, which also rattled investors by signalling that it would cut its dividend.
Shares in the London-listed asset manager closed down 53½p, or 13 per cent, at 358p after it reported a 28 per cent decline in adjusted pre-tax profits to £48.3 million in the 12 months to the end of March as it was hit by clients continuing to pull their funds.
Net outflows totalled £4.9 billion during the period in the third consecutive year of withdrawals by Liontrust customers, knocking the assets overseen by the group to £22.6 billion.
Like other fund managers that focus on UK equities, Liontrust has suffered in recent years as investors have shied away from the London stock market in favour of more attractive opportunities elsewhere, particularly in the United States. As an active manager that picks and chooses investments, it has also faced stiff competition from cheaper passive funds that simply track indices.
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