Liontrust: FY26: Better institutional momentum, but retail is the key issue

Research evidence excerpt

Liontrust: FY26: Better institutional momentum, but retail is the key issue

Deutsche Bank Group

Deutsche Numis Research

Rating Company Date

Sell Liontrust 25 June 2026

Forecast Change

Europe

United Kingdom

Reuters Bloomberg Exchange Ticker Price at 24 Jun 2026 (GBP) 331.00

LIO.L LIO LN LSE LIO

Price Target (GBP) 205.00

Diversified Financials

413.50 -

Asset Managers 52-week range (GBP) 231.50

FY26: Better institutional momentum,

Valuation & Risks but retail is the key issue

Jonas Dohlen

FY26 results were broadly in line Research Associate

Total revenues of £123.0m were down 22% year-on-year, while adjusted PBT of +44-20-7541-1561

£30.5m was in line with our estimate. The more important debate, in our view, is not

David McCann

the FY26 results, but whether the recent improvement in headline flow momentum Research Analyst

represents a genuine inflection in the business. We think it is too early to make that +44-20-754-11564

argument.

Key changes

No fundamental change to our investment case 190.00 to

TP ↑ 7.9%

Institutional momentum has improved, with QTD net outflows slowing to £276m, 205.00

supported by over £500m of gross institutional inflows. However, we would not Adj. EPS (GBP) 28.41 to 32.14 ↑ 13.1%

view this as evidence of a broad-based inflection. FY26 net outflows were still - Total Revenue

123 to 120 ↓ -2.6%

£4.2bn, with UK Retail Funds and MPS net outflows of £4.5bn. In our view, this (GBPm)

shows that the higher-margin retail franchise remains under significant pressure. Source: Deutsche Bank

Revenue margin also fell to 55bps from 60bps, and we see further mix risk as growth

Price/price relative

is increasingly driven by lower-margin institutional, multi-asset and River Global

Holdings flows. While cost control supported FY26 PBT, we struggle to see the