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UK wealth manager Liontrust's annual profit drops as $6.7 billion outflows bite
June 25 (Reuters) - British wealth manager Liontrust Asset Management (LIO.L), opens new tab on Wednesday reported a 28.3% fall in annual profit, following a year marked by 4.9 billion pounds ($6.68 billion) of outflows.
While U.S. President Donald Trump's barrage of steep tariffs sparked an exodus of investors amid a global market meltdown, some wealth managers struck a cautiously optimistic note and said that volatility resulted in higher trading volumes and clients seeking more financial advice.
"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," said CEO John Ions.
However, Ions said that this environment will likely drive investors towards active asset managers, encourage deeper market engagement and promote more diversified portfolios.
Liontrust also introduced a new capital allocation policy, which includes a new dividend policy with a payout ratio of a minimum of 50% of adjusted diluted earnings per share and capital returns to shareholders via buybacks.
The company clocked 48.3 million pounds of adjusted pre-tax profit for the year ended March 31, below last year's 67.4 million pounds.
($1 = 0.7341 pounds)
