Liontrust Asset Management PLC: A Beacon for Institutional Investors

Liontrust Asset Management PLC (LON:LIO) has long been a favored investment for institutional owners, with a significant 78% of the company's shares held by this group. This article explores the reasons behind Liontrust's appeal to institutional investors and the key factors that have contributed to its success.



Liontrust's multi-boutique structure and strategic growth through acquisitions have played a crucial role in shaping its overall performance and institutional ownership. The firm's multi-boutique model allows each team to have its own distinct processes and franchises, which has contributed to its strong long-term track record. For instance, the Economic Advantage team, which manages a range of UK equity funds, has a top-performing track record in the IA UK Smaller Companies sector over the past 10 years. Additionally, the acquisition of Alliance Trust Investments in 2017 brought in the Liontrust Sustainable Investment team, which manages the Sustainable Future range of strategies and is considered a jewel in Liontrust's crown.

However, some of Liontrust's funds have underperformed in recent years, particularly in areas like UK small- and mid-caps, Global Smaller Companies, and US Opportunities. This underperformance can be attributed to various factors, such as weak investor sentiment towards specific areas and headwinds in the macroeconomic backdrop. Despite these challenges, experts like Darius McDermott and Jason Hollands remain confident in Liontrust's overall offering and the long-term potential of its investment strategies.

Liontrust's consistent investment processes and strong track record have attracted institutional investors seeking long-term performance and effective risk control. The firm's focus on areas of investment in which it has particular expertise, such as equities, global fixed income, sustainable investment, and multi-asset portfolios and funds, has also contributed to its appeal to institutional investors.

In conclusion, Liontrust's multi-boutique structure and strategic growth through acquisitions have played a crucial role in shaping its overall performance and institutional ownership. While some funds have underperformed in recent years, the firm's strong long-term track record, consistent investment processes, and expertise in specific areas of investment have maintained its appeal to institutional investors.