Schroders buys 15 pct of UK's Liontrust - paper

LONDON, June 14 (Reuters) - British fund manager Schroders (SDR.L) has bought 15 percent of its smaller rival Liontrust Asset Management (LIO.L) from Fidelity International, taking its total stake to just under 30 percent, Britain's Independent newspaper said late on Sunday.

The Independent said in an early edition of Monday's paper that the purchase had been made by a fund controlled by Schroders' Andy Brough.

"Andy believes fund managers like Liontrust are set to prosper in the coming months with retail investors coming back to the market. These shares look very cheap and I'm surprised that Fidelity has sold them now,"the Independent quoted a source close to Schroders as saying.

Schroders, Liontrust and Fidelity were not immediately available for comment.

Liontrust reported a 25 percent fall in its pretax profits to 12.4 million pounds ($20.46 million) for the year ending March 31 on Wednesday, and has recently lost two of its star fund managers.

In a regulatory statement to the London stock exchange late on Friday, Fidelity International disclosed that a share transaction had taken place, which took its total stake in Liontrust below 15 percent. (Reporting by David Milliken, editing by Martin Golan) ($1 = 0.6059 pounds)