Liontrust Asset Management has seen its profit before tax (PBT) drop by 23% to £67.4m in the year to 31 March.

The specialist fund manager also reported a 19% fall in gross profit from £229.8m in 2023 to £186.1m in the latest full financial year.

In this period, its assets under management and advice (AuMA) dropped by 11.5%, reaching £27.8bn, while falling further to £27.25bn as of 20 June.

Furthermore, Liontrust's full year dividend for its shareholders remained at 72 pence per share, not moving since 2023.

Reflecting on these results, Liontrust stated that the drop in financial figures was a result of alterations into how people have been investing in recent months.

Chief executive officer at Liontrust Asset Management, John Ions, said: "We have started to see signs of a change in investor sentiment and this is likely to move significantly when more central banks reduce interest rates and there is greater political and fiscal certainty in the UK. 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.

"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 £6.1bn across the whole financial year for Liontrust. This market environment has also prompted many commentators to again question the value of active asset management.

"The events of the last year have not reduced our belief in active management but have reinforced the need for Liontrust to expand our investment capability across asset classes and investment styles, broaden distribution and enhance the group’s operations."

Looking ahead, Liontrust said it has an "expanding and compelling range of investment teams with robust processes", as well as a "strong brand" and enhanced operating model.

As a result, it added that it has "great confidence that we have the platform to succeed in delivering growth".

Ions added: "We are optimistic about the long-term outlook for the UK economy and stock market. The UK has not lost the ability to develop world class businesses and it is about providing the incentives and liquidity to encourage such companies to list on the London Stock Exchange.

"A key part of this is attracting international investors to reinvest back in the UK market. We are well positioned for when the UK comes back into favour given that the four funds managed by the Economic Advantage team, including Special Situations, to 31 May are in the first quartile of their respective IA sectors since launch."

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