Liontrust buys EM fund business Occam

Liontrust is set to acquire the fund management business of Occam, including its emerging markets and Asia teams in a £3.9m deal.

The group will take on the management contracts of the Occam Emerging Markets Opportunities, Occam Asia Focus, Occam Asia Absolute Return, Occam Sorbus, Occam Europe Focus and Occam Diversity funds.

Liontrust's James Inglis-Jones and Gary West will take over as fund managers of the Occam Sorbus and Europe Focus funds on completion of the deal.

Before joining Occam, manager Eoghan Flanagan was co-founder of the highly successful Thames River Nevsky team and James Mellersh was a senior member of the team. Mark Williams managed the Friends Provident International GIP Far East Sicav and F&C Pacific Growth funds.

The acquisition will see Liontrust take on Occam Investment Management (Malta) Limited, Occam Asset Management and Occam Investment Services Limited.

The total consideration for the acquisition will be 3% of Occam's AUM transferred, plus £187,500. Based on its AUM on 28 July 2011, this would be £3.91m. The amount payable is capped at no more 24.99% of Liontrust's market capitalisation as at the date of completion.

The two firms do not expect there to be any disruption for investors in Occam's funds, which will continue to be run according to managers’ own investment processes and market views.

Occam has a Dublin range of funds and a distribution network in continental Europe, the Middle East and other international markets to supplement Liontrust's traditional focus on UK-based investors, it said.

The group’s co-founders, Jonathan Hughes-Morgan and David Sheppard, and their sales team will strengthen Liontrust’s presence in this area, the group said. Subject to completion, Hughes-Morgan, CEO of Occam, will join the Liontrust board.

Occam increases Liontrust's assets under management, which stood at £1.309bn on 30 June 2011, by £124m.

John Ions, chief executive of Liontrust, said: "This is the next step in the development of Liontrust.

The business now has the foundations from which to grow following the restructuring of the business, developing the brand, raising awareness and returning to net inflows. Having re-established these fundamentals, now is the right moment at which to make this acquisition, expanding our fund management capability and diversifying into new asset classes which are experiencing increasing investor interest.

"This acquisition greatly enhances Liontrust and provides a stronger foundation from which to grow, benefiting clients and shareholders alike."