Liontrust Asset Management has broken through £10 billion in assets under management (AUM), but warned the market that absorbing the cost of external research will cost it between £1 million and £1.5 million from next year.
In its half yearly update, the group announced net inflows of £178 million in the six months to 30 September, up from £92 million year-on-year. Pre-tax profit rose 61% from £2.2 million to £3.6 million, while revenue rose 57% to £35 million.
Total AUM was £9.6 billion at the end of September, but £10.1 billion as of 21 November. The acquisition of Alliance Trust Investments, which completed in April, added £2.5 billion of AUM at a cost of £29.4 million.
David Roberts and Phil Milburn, the high profile former Kames Capital fixed income managers join in January in a move that will add further capability to the team.
Chief executive John Ions (pictured) said: ‘Our assets under management are now in excess of £10 billion, with net inflows of £178 million in the first half of the financial year. This is a testament to the determination and talent that exists within Liontrust. I have said before that there are no quick routes to success, but by doing the basics as well as we can each day and paying strict adherence to our core beliefs and investment processes, we will succeed.
‘We have generated these net inflows despite the uncertainty caused by the ongoing Brexit negotiations and the fact UK All Companies has been the worst selling sector by net retail flows in seven of the past 13 months to the end of September 2017, according to the IA. It shows the resilience of investor demand for active fund management with proven long-term track records and robust investment processes despite a challenging environment.’
The company added: ‘Liontrust has decided that with effect from January 2018 the cost of external research will be absorbed by the Group. The estimated annualised impact of this change on the group's revenues is expected to be £1 to £1.5 million.'