Liontrust Asset Management PLC on Wednesday reported a decline in assets under management and advice in the first-quarter of its financial year, but was optimistic in its outlook.

The London-based company which London-based Liontrust focuses on long-term active management of investment said it believed the latest UK election result should ‘herald a period of stability that will be positive for financial markets. It is encouraging that the new government has a pro-growth agenda and is committed to the simplification of pensions.’

Assets under management and advice totalled £27.04 billion at the end of June, down 2.8% quarter-on-quarter from £27.82 billion.

It reported net outflows of £923 million, though a positive market and investment performance to the tune of £139 million. Net outflows slowed from a chunkier £1.6 billion a year prior, Liontrust noted.

Chief Executive Officer John Ions added: ‘It is encouraging that the new government has a pro-growth agenda and is committed to the simplification of pensions. Along with falling inflation and the expectation of a reduction in interest rates, this should encourage international investors to return to the UK and boost capital flows to the stock market. Given the ever-increasing need for individuals to save more for their retirement as well, this will significantly improve the outlook for asset managers. Liontrust is well placed for this improving environment as we have a strong brand, distribution, robust investment processes and a leading reputation for managing UK equities.’

Liontrust shares rose 2.6% to 619.60 pence each on Wednesday morning in London.

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