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Liontrust sees further outflows and reveals cost-cutting measures

Liontrust Asset Management is to embark on a cost-cutting exercise in view of its current funds under management.

The firm’s board has decided to implement a cost reduction and restructuring programme in a bid to save £2.5m per annum from the next financial year.

The restructuring programme is expected to include the closure of Liontrust’s North American sales and marketing office, as well as other employment and operating costs, and restructuring deals with the firm’s UK operating subsidiaries into limited liabilities partnerships.

The move comes as Liontrust announces £131m of outflows in the fourth quarter of 2009, with the firm’s assets under management on December 31, 2009 standing at £1,180m. Of the total outflows, £33m came out of the retail range.

Liontrust has also seen its performance fees more than halve from £3,332,000 in the fourth quarter of 2009 compared to £7m in the final quarter of 2008.

Liontrust has reiterated plans to add further funds to its range in the next few months for both its credit and global equity teams. The launches include the Liontrust credit absolute return fund, with further launches to be penned once the investment processes of both teams have been drawn up.

The group has also confirmed the launch of a joint venture business for its global equity team, which is headed by Ross Hollyman. Liontrust is to invest £850,000 for Liontrust  Global Investment Services Limited and has an option to buy the team out after five years. All members of the LGIS team will be shareholders.

Liontrust has also announced the appointment of former AWD marketing director Graham Hooper. Hooper joins as an independent non-executive director and will look to help build the business in the retail space with his knowledge of funds distribution.

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