Investment bank Peel Hunt has given a ‘buy’ rating to Liontrust Asset Management, the asset manager that tried to buy Switzerland’s GAM.
Following outflows £1.6 billion inhttps://www.funds-europe.com/news/newgame-beats-liontrust-in-gam-bid the three months ending September 30 (the company’s second quarter – Q2), UK-listed Liontrust saw its assets under management fall 6% during the period and 12% over the last two quarters.
Outflows were mainly in UK retail, where the firm is concentrated, but also included pressure from downward market movements.
Liontrust shares have fallen 77% since September 2021 and are 52% down year-to-date, which places the firm share price performance towards the bottom of its peer group, according to Peel Hunt.
But the investment bank reiterated is ‘buy’ rating, saying that despite cyclical pressures, the share price does not reflect the “strength of the core franchise”.
Also, Liontrust’s AUM may compare unfavourably to the wider asset management sector, but it is not a “standout”, said the bank’s analyst, citing Ashmore and Premier Milton for having comparable drops in AUM.
Liontrust’s attempted acquisition of GAM failed in August.
AUM and assets under advice fell 6.3% over Liontrust’s Q2 period, to £27.7 billion, according to its latest trading update.
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