Liontrust has decided to close its European income and macro thematic investment teams, as it offloads another group of managers to Somerset Capital.
The European income and macro thematic teams, who will be leaving the firm in due course, have nearly £200m in assets under management between them.
The Liontrust European Income and European Enhanced Income funds will be managed by its cashflow solution team with immediate effect and will be merged into the Liontrust European Growth fund.
The Liontrust Macro Equity Income fund is to be managed with immediate effect by the global equity team, and will be merged into the Liontrust Income fund, while the Liontrust Macro UK Growth fund is to be managed with immediate effect by the economic advantage team and will be merged into the Liontrust UK Growth fund.
Liontrust has also sold its Asia Income team to Somerset, and will be shutting the Liontrust GF Asia Income fund, as it is not part of the sale.
Asia Income team members Mark Williams, Carolyn Chan and Shashank Savla will all join Somerset, which will take on management of the Liontrust Asia Income fund.
Liontrust says it took the decision to review its fund ranges after a period of “rapid growth”, including the acquisition of Architas’s UK investment business.
“We have been reviewing our fund ranges and evaluating where best to devote our resources and strategic focus over the next few years,” the firm writes this morning. “This review coincided with Liontrust being approached by Somerset to acquire the Asia Income team and the Asia Income fund.”
Because of its specialism in emerging markets and Asian equities, Liontrust decided that a sale to Somerset was in the best interest of the team, investors and shareholders.
The deal is valued at up to £2m, payable over five years. The firms are still awaiting regulatory approval.
Excluding the GF Asia Income fund which will be closed, the team brings £82m in assets over to Somerset. The GF Asia Income fund had around £15m under management before Liontrust decided to shut it, a decision which should complete by the end of the month.
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