Liontrust Faces Outflows Amid Market Shift, Shares Fall

Liontrust Asset Management Plc (LON: LIO) shares are down over 4% Tuesday after the company reported net outflows of £1.2 billion for the quarter ended September 30, 2025, slightly exceeding the £1.1 billion outflow from the same period last year.

Assets under management and advice (AuMA) decreased by 2.7% during the period, settling at £22.0 billion as of September 30, 2025. However, a slight recovery was noted, with AuMA reaching £22.2 billion by October 3, 2025, indicating potential stabilization.

The outflows were spread across wealth manager, adviser, and retail clients in the UK, highlighting broad-based challenges in retaining client assets. Despite these figures, Liontrust maintains a positive outlook, citing increasing client interest in active management strategies.

CEO John Ions commented, “We are now seeing clients seeking to diversify away from the US and towards active management, and this is shown in an acceleration of interest in Liontrust strategies.” This suggests a potential shift in investor preferences that could benefit Liontrust in the long term.

Liontrust emphasized the growing importance of geographical diversification and stock selection beyond mega-cap companies. The company believes that increased dispersion of returns will highlight the value of active management, a core strength of Liontrust's investment approach.

The company said it is experiencing success in attracting institutional investors and wealth managers, particularly internationally. New mandates, though not yet funded, and inclusion on clients' buy lists indicate a promising pipeline for future growth.

A breakdown of AuMA by investment process reveals that Sustainable Investment remains the largest segment, with £7.6 billion, followed by Economic Advantage at £3.3 billion and Multi-Asset strategies at £3.9 billion.

While some funds demonstrate strong performance with top quartile rankings since inception, a few others, particularly in the Sustainable Future and Global Equity categories, show weaker performance over the shorter term.

Liontrust will announce its half-year results for the six months ended September 30, 2025, on Thursday, November 20, 2025.