Asset managers show signs of rebound as assets tick up and outflows slow
London-listed asset managers Liontrust and Rathbones showed signs of a rebound today as assets under management ticked upwards and the volume of investors pulling their cash from funds began to slow.
London’s big money managers have suffered a torrid 12 months as markets descended into turmoil in the wake of war in Ukraine and soaring inflation. A string of London’s investment giants reported slumps in the value of their holdings in the third quarter last year as investors fled the market.
However, Rathbones said this morning it had notched a jump in the amount of cash injected into its funds in the final three months of the year, as total net inflows hit £145m, up from £67m in the previous quarter.
Liontrust meanwhile said outflows had slowed significantly on the previous quarter despite a “year of negative investor sentiment”. The London investor reported net outflows of £0.6bn, a marked slowdown after £1.6bn was pulled in the prior quarter.
Holdings of both firms ticked upwards, with Rathbones reporting a rise in total funds under management and administration (FUMA) to £60.2bn, compared with £57.9bn at the end of September.
Liontrust said the value of its assets rose three per cent to £32.6bn despite the sustained outflows.
John Ions, chief executive of Liontrust, said investors’ outlook had continued to be weighed down in the final quarter by the “the ongoing macroeconomic and geopolitical concerns”.
“Liontrust was not immune to the continued volatility in stock markets, leading to net outflows of £632m in the last three months of the year,” he added.
Assets under management as of 16 January were at £33.8bn.
Liontrust said it has now planned month-long roadshow around the UK next month in a bid to tempt in court financial advisers and tempt in cash from new channels, Ions announced this morning.
“We have been opening up new distribution channels internationally, including through our Cashflow Solution and Global Fundamental teams, that will help us to continue to diversify our client base. And our growing digital presence is enabling us to expand our engagement with investors,” added Ions.
Volatility over the past 12 months has dented the value of Liontrust, with shares trading down over 30 per cent on the year from January.