Shares in Liontrust (LIO) fell more than 7% to 486p in a week as the fund manager reported net outflows of £1.1 billion for the three months ending 30 September.

The company’s shares hit a 52-week low on 11 October with AuMA (assets under management and advice) falling 4% to £26 billion.

Liontrust CEO John Ions blamed political and economic uncertainty around the new Labour government for the recent outflows.

Alexander Bowers, analyst at Berenberg thinks the short-term flows are ‘challenging to predict’ and expects the business to remain ‘in net outflows in the second half’.

The company will hope conditions improve when uncertainty around changes to taxation are resolved when the Budget is announced on 30 October.

Berenberg believes that ‘it is well positioned when investor sentiment returns to the UK equity market, with the potential of declining base rates acting as a tailwind.

‘We expect the company to target a low-to-mid-30% adjusted pre-tax profit margin (we forecast a full year 2025 adjusted operating margin of 32%).’ 

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