Liontrust saw outflows of almost £1bn in the three months to June 30, with the firm predicting more stability with the new government.
In a trading update, published today (July 10), chief executive John Ions said Labour's general election win could herald in a period of stability which could see investors return to UK stocks.
Net outflows for the period slowed to £923mn, down from £1.6bn in the same period in 2023.
Assets under management and advice were £27bn as at June 30, a decrease over the period of 2.8 per cent.
Ions said: "Labour's large majority in last week's general election should herald a period of stability that will be positive for financial markets.
"It is encouraging that the new government has a pro-growth agenda and is committed to the simplification of pensions.
"Along with falling inflation and the expectation of a reduction in interest rates, this should encourage international investors to return to the UK and boost capital flows to the stock market. "
Ions said the increasing need for people to save for retirement could also improve the outlook for asset managers.
He added: "Liontrust is well placed for this improving environment as we have a strong brand, distribution, robust investment processes and a leading reputation for managing UK equities."
The CEO said the group has been expanding its investment and distribution capability to support the group in the future.
tara.o'connor@ft.com
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