Liontrust CEO seeks investment capabilities in Switzerland

Ions said Liontrust has invested more in distribution in Switzerland than in any other market outside the UK. He described it as a highly developed market, with knowledgeable investors across private banks, institutions, independent wealth managers and family offices. Success, he said, depends first on building relationships and visibility; assets often follow work done years earlier.

The firm considers organic growth, hiring teams and acquisitions as ways to expand. A new team may need three years to establish a three-year track record, and larger clients may be unable to invest while a fund remains small. An acquisition can speed up the process, Ions said, but its purpose must be to add investment capabilities that complement Liontrust’s existing offer. He has previously examined Swiss businesses as potential targets and will continue to do so, though he gave no timetable.

Ions said Liontrust’s failed attempt to acquire Zurich-based GAM had a clear strategic rationale. GAM offered broad European distribution, strong Swiss connections and investment capabilities that would have complemented Liontrust’s more UK-focused solutions business. The deal would have advanced several objectives at once, he said. After it fell through, Liontrust moved on and continued investing in its proposition and operating platform.

He attributed the firm’s difficult recent years partly to several strategies sharing a bias towards small- and mid-cap quality growth companies. Those approaches came under pressure when markets favoured large caps, momentum and value; UK and sustainable equities faced additional headwinds. Liontrust has invested in its operating platform and uses BNY’s infrastructure, which Ions said helps it bring investment teams into the business and connect them with distribution partners.

Ions also sees conditions changing for active managers. He cited a shift away from momentum driven by flows into a small group of large stocks, alongside a move from globalisation towards regionalisation. Swiss investors are showing interest in European equity strategies and renewed engagement with fixed income, he said. The firm’s technology and innovation team is also attracting attention because its portfolio is not as heavily concentrated in the largest technology companies.