Liontrust outflows continue as new funds lined up

LONDON (Reuters) - Fund firm Liontrust Asset Management said on Tuesday clients had continued to withdraw their money during the three months to June 30 as it plans new fixed income funds to help stem the tide.

Total net outflows were 902 million pounds in the period and would have brought assets under management (AuM) below the 1 billion pound mark but for positive market movements.

AuM stood at 1.12 billion pounds at June 30, down from 1.2 billion at June 9. Performance fees bounced back from zero in the same period last year to reach 0.58 million pounds, almost entirely accrued from the firm's credit fund.

Liontrust has been battling the impact of the departure of star fund managers Jeremy Lang and William Pattisson. The move was blamed for a 25 percent drop in full-year pretax profits and also ended Liontrust's talks with prospective merger partners.

The company has tried to counter withdrawals sparked by that announcement with the hire of Ross Hollyman from Julius Baer's (BAER.VX) hedge fund business, GAM. He will join in January 2010.

"His appointment has been very well received by clients and investors," Liontrust said.

"BUY" RATING

Liontrust shares were untraded at 8:25 a.m. and closed at 113.75 pence on Monday. Altium Securities upped its price target to 130 pence from 120 pence and kept its "Buy" rating on the stock.

The broker cheered the "positive" arrival of Hollyman.