Britain's Liontrust Asset Management (LIO.L) warned of client uncertainty ahead of the new government's maiden budget as it posted lower second-quarter assets under management and advice (AuMA) on Thursday, sending its shares to a near seven year low.
"The speculation and uncertainty around changes to taxation and reliefs in the lead up to the budget on 30 October, however, have impacted investor confidence and fund flows for the whole industry including Liontrust," the company's CEO John Ions said in a statement.
Shares in the London-listed asset manager were down 3.2% at 511 pence apiece as of 0726 GMT.
High interest rates and inflation are already weighing on global financial markets, while geopolitical tensions in Ukraine and the Middle East have also sapped investor appetite.
Finance minister Rachel Reeves has warned that some taxes will increase in a bid to fix the economy.
"The wait for a turn in flows – for the industry as well as for Liontrust – continues. Hopefully the Budget will offer some relief," analysts at Panmure Liberum said in a note.
The asset manager's AuMA stood at 26 billion pounds ($33.97 billion) as of September 30, a 4% fall from June 30.
Net outflows for the three months stood at 1.1 billion pounds, higher than the 900 million reported as of June 30 but lower than year ago levels of 1.6 billion pounds.
($1 = 0.7653 pounds)
