STRUGGLING funds group Liontrust Asset Management sees a “change in investor sentiment” coming as banks cut rates and there is greater “political and fiscal certainty in the UK”.
CEO John Ions says: “There is no doubt that the amount individuals are investing has been negatively impacted by the cost of living, the reductions in Covid savings and tax rises. With more stability will come greater recognition of valuation opportunities especially in the UK stock market.”
If investors agree with him and pile into London shares, that would boost the stock market and help sentiment in the wider economy.
The fund manager fell to a loss of £0.6m and funds under management plunged 11% to £27.8bn, in the year to March.
In common with must of the stock picking sector, Liontrust has lately seen many of its funds under perform. Lots of investors are now picking simple index tracking funds instead, which are cheaper.
Ions added: “The negative investor sentiment has combined with a market environment over the past 18 months that has proved a significant headwind for many of our strategies and led to net outflows of £6.1 billion across the whole financial year for Liontrust. This market environment has also prompted many commentators to again question the value of active asset management.”
It did manage to maintain the divided at 72p, suggesting it may be better to buy the shares than the funds.
The stock fell 27p to 723p today.
