Liontrust's failed takeover of Gam earlier this year will "lead to restructuring", according to the firm's chief executive.
A trading update for the three months to September, published today (October 18), showed net outflows of £1.6bn with the firm's assets under management falling by 6.3 per cent in the period to £27.7bn.
Back in August, Liontrust’s £96mn bid to buy Gam was unsuccessful after it failed to get enough support from shareholders.
Chief executive of Liontrust, John Ions, reflected on the "challenging year".
He said: "The proposed acquisition of Gam would have accelerated our strategic objectives; without Gam, they do not change and our belief in them has only strengthened
"The knowledge and insight gained through the Gam process is also helping us shape our future operating model for the long-term growth of the Liontrust business.
"This will lead to restructuring and efficiencies in some areas of the business. Our flexible remuneration model for fund managers and other staff remains unchanged in light of the headwinds we are facing; in particular, the revenue share model for fund managers ensures they are fully aligned with the business and investors."
Ions went on to say the firm is not only focused on mergers and acquisitions and a key focus going forward will be attracting new investors.
He added: "Liontrust’s investment teams will be presenting to hundreds of clients and potential clients in the UK and internationally at events throughout the autumn, including our annual virtual Sustainable Investment conference and an adviser roadshow around the UK.
“The hard work and dedication of everyone at the company through this period will benefit Liontrust over the months and years ahead.
"Combining a great level of service and investor experience with excellent investment teams and processes, a pre-eminent brand, strong financial position and the ability to attract further talent continues to give me great confidence about the outlook for Liontrust.”
tara.o'connor@ft.com
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