7th Apr 2016 07:04
LONDON (Alliance News) - Liontrust Asset Management PLC on Thursday said it has acquired a European income fund business and said it recorded a rise in assets under management in the year to the end of March.
Liontrust said it will acquire the European income fund management unit of Argonaut Capital Partners LLP, adding GBP298.0 million to Liontrust's total assets under management.
The consideration for the business will be paid in cash and will be equal to 1.5% of the assets under management of the acquired business when transferred. At present, this would translate to a GBP4.5 million cash payment by Liontrust.
Liontrust will launch the European Income and European Enhanced Income Funds and will merge the Argonaut European Income and European Enhanced Income funds into these upon completion of the deal. Both funds are run at Argonaut by Olly Russ, who will join Liontrust under the agreement.
"Olly Russ will be an excellent addition to our existing six fund management teams and we look forward to promoting him to our client base across the UK. Olly will extend our equity income capability at a time when demand for income investing is only going to rise with increased longevity and the pension freedoms," said John Ions, Liontrust's chief executive.
Liontrust, in a separate statement on Thursday, also said its assets under management increased GBP297.0 million in the year to the end of March, or 7.0%, to GBP4.79 billion in total.
The group recorded net inflows of GBP255.0 million for the financial year, with GBP92.0 million in the quarter to the end of March.
Shares in Liontrust Asset Management were up 5.7% at 262.00 pence shortly after market open Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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