Liontrust says UK shares are ‘out of favour’ as outflows rise
THE strife in UK fund management continued today when Liontrust said it had lost another £1.2 billion in funds in the past three months.
Chief executive John Ions said: “This follows a period in which many of our core investment strategies, notably quality growth, small/mid-caps and UK equities, have been out of favour, impacting both performance and flows.” Liontrust now manages £27.6 billion. Yesterday, Ashmore, the emerging markets fund manager, said investors had withdrawn $2 billion in the first three months of the year as they look to cut risk.
It follows figures in March showing that money is flowing out of London equities at the fastest pace ever. According to the Investment Association, UK savers took £14 billion out of UK shares in 2023, the eighth consecutive year of outflows.
Liontrust said: “Liontrust has excellent investment teams with proven processes and strong long-term performance. As market sentiment changes, Liontrust is well positioned to benefit.” Yesterday the FTSE 100 had its worst day for nine months, falling nearly 2% on the assumption that interest rates will stay higher for longer.
There are growing calls for the Government to do something to improve the attractiveness of UK shares to investors. Chancellor Jeremy Hunt launched a UK ISA to allow tax free investment in British shares. Observers say this is not enough to make a difference.