Flows into sustainable funds drive Liontrust AUM to £35.7bn

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Flows into sustainable funds drive Liontrust AUM to £35.7bn

Liontrust Asset Management saw assets under management and advice climb 15% to £35.7bn over the six months to end of September, as "strong flows" into its Sustainable Future funds helped net inflows top £2bn.

Chief executive John Ions (pictured) said the firm generated net inflows of £1.1bn in the most recent quarter to take the total to £2.1bn since the start of the financial year on 1 April 2021.

"Clients demanding a more sustainable outcome from their investments continue to drive strong flows into our Sustainable Future funds," Ions said.

The quality and integrity of the sustainable investment team, built over a 20-year track record of successful investing, has enabled them to clearly differentiate themselves at a time of many new fund launches."

"The quality and integrity of the sustainable investment team, built over a 20-year track record of successful investing, has enabled them to clearly differentiate themselves at a time of many new fund launches."

As at 30 September, AUM in its sustainable investment process stood at £13.2bn, £12.2bn of which is in UK retail.

Liontrust's ‘Economic Advantage' investment process had AUM of £10.1bn by the end of the period.

Peel Hunt analysts Stuart Duncan and Robert Sage said in a note that they maintained their ‘hold' recommendation for Liontrust, after the asset manager "confirmed the continuation of strong growth trends, as AUM rose 15% to £35.7bn".

They added: "This is modestly higher than our expectations, albeit more driven by market movements than flows."

Duncan and Sage said that AUM relating to sustainable investment grew 29% in the first half of 2022, although second quarter growth of 11% was below the first quarter level of 16%. Global equity and economic advantage grew by mid-teens percentage points, the note added.

Liontrust also announced the appointment of Rebecca Shelley as a new non-executive director, joining the board on 1 November.

From 2012 to 2016, she was the group communications director of Tesco and, most recently, spent three years at TP ICAP as group corporate affairs director and was a member of their global executive committee.

"Rebecca has extensive experience in financial services and listed companies as a non-executive director. Rebecca will be a valuable addition to the board," added Ions.