Liontrust Sees Reduced Outflows and Advances River Global Acquisition in Q1 2026 Update

• Sustainable Investment (equities & managed funds): £5,309 million
• Cashflow Solution: £4,086 million
• Multi-Asset: £3,550 million
• Economic Advantage: £2,219 million
• Global Fundamental: £1,602 million (includes £1,059 million in investment trusts)
• Global Equities: £1,027 million
• Fixed Income: £988 million
• Global Innovation: £773 million

Notably, AuMA ticked up to £20.8 billion by 20 April 2026, helped by markets and early Q2 flows. Add the expected funding of over £500 million of new institutional mandates before end-May and there is scope for further near-term AuMA uplift. If and when the RGH acquisition completes, RGH’s £2.6 billion of AuMA (as defined by River Global PLC, excluding EOT-related AuMA and certain terminating or closing mandates) would broaden the mix further. A simple, illustrative pro forma of current AuMA (£20.8 billion) plus at least £0.5 billion of mandates and £2.6 billion from RGH would point to £23.9 billion or more. Timing and final amounts will depend on funding and completion.

Institutional momentum and international reach

Management highlights growing investor diversification away from US equities and rising demand for active management, with strong performance across European strategies acting as a draw. The two newly won institutional mandates (over £500 million combined) underline that message and should be visible in the numbers by the June quarter-end if funded as guided.

The sales footprint is widening too. Liontrust is extending distribution in the Middle East and Asia and continues to make progress in Europe. If this continues, it should reduce reliance on the UK retail channel, where net redemptions remain most acute.

River Global deal: style diversification and a wider client base

On 14 April 2026, River Global PLC shareholders approved the sale of RGH to Liontrust with 99.97% of votes in favour. Management says the acquisition will expand Liontrust’s range of investment styles – including value – and broaden its client base. There has been positive client and shareholder feedback, and Liontrust believes there is demand for RGH funds among its existing clients.

Why this matters: the group’s recent pressure points have been UK retail outflows and a concentration in certain styles. Bringing in value strategies and new clients provides another engine for flows, particularly if European and global strategies keep performing. Remember, completion, final AuMA and synergy benefits are not yet disclosed, and RGH’s £2.6 billion AuMA excludes AuMA related to European Opportunities Trust PLC and certain terminating or closing mandates.

Performance check: bright spots in Europe, global and fixed income

Eight funds sit in the first or second quartile over both 1 and 3 years:

• Fixed Income: SF Monthly Income Bond, SF Corporate Bond, MA Monthly High Income
• Europe: European Dynamic, GF European Smaller Companies
• Global: Global Technology, Balanced, Emerging Markets

Standouts include Liontrust European Dynamic Fund (1st quartile across 1, 3 and 5 years, and since inception) and Liontrust Balanced Fund (1st quartile across all time frames shown). The global technology and emerging markets funds are also 1st quartile over 1 year and 3 years. Against that, a number of UK-focused and sustainable funds remain 3rd or 4th quartile over 1 year, which helps explain continued UK retail outflows.

Positives and pressure points in this update

What I like

• Outflows easing: £(836) million vs £(1,284) million last year is a clear improvement.
• Institutional traction: two mandates of over £500 million combined, expected to fund by end-May.
• April bounce: AuMA up to £20.8 billion by 20 April 2026.
• Pipeline and strategy: international distribution expanding; River Global adds style and client diversification.
• Performance green shoots: European, global and fixed income clusters delivering top-quartile results.

Where caution is warranted

• Still net outflows: UK retail remains the weak spot at £(838) million for the quarter.
• Market drag: £(1,067) million from performance shows earnings sensitivity to markets.
• Mixed fund rankings: several UK and sustainable funds sit in lower quartiles, which could restrain near-term retail inflows.

Key dates and what to watch next

• Funding of new institutional mandates – before end-May 2026. This is a short-term AuMA catalyst.
• Completion of the River Global acquisition – shareholder approval is in, but completion timing and integration details are not disclosed.
• Full-year results – Wednesday, 24 June 2026. Expect fuller colour on flows, margins and the post-deal roadmap.

Josh’s take

This is a cleaner quarter from Liontrust. Flows are heading the right way, institutional demand is building, and April’s AuMA bounce helps sentiment. The River Global deal looks strategically sensible: more styles, more clients, more ways to win. The flip side is that UK retail redemptions and patchy performance in some franchises remain a drag and will take time to turn.

Near term, watch for those mandates to hit AuMA and for any further pick-up in European and global strategies. Medium term, successful integration of RGH and continued progress outside the UK are the levers that could shift Liontrust from stabilisation to organic growth.