Positive outlook: Liontrust boss John Ions
The boss of one of Britain’s leading asset managers says UK small- and mid-cap stocks are in disgrace after investors withdrew billions from their funds.
In an update underlining conflicts in the industry, Liontrust Asset Management was hit by £6.1 billion in withdrawals last year. Around £4 billion came from UK shares, in a further sign that the London stock market is not loved.
It comes amid some soul-searching in the City as a lack of investment in UK shares hits valuations and leaves them vulnerable to takeovers.
Other companies have tried to leave London to list in New York or elsewhere, or as private companies.
Liontrust chief executive John Ions said: “Many of our core investment strategies, particularly quality growth, small/mid-caps and UK equities, have fallen out of favour, impacting both performance and flows”.
In the latest quarter, the three months to the end of March, investors withdrew £1.2bn of funds, including £872m from those focused on the UK.
Liontrust now manages £27.6bn. But Ions insists better times are ahead as central banks look to start cutting interest rates.