UPDATE 2-Liontrust profits, div plunge after managers leave
* CEO says outflows stabilise after Lang Pattisson departure
* Dividend cut by 40 percent
* Plans global equity products
* Shares down nearly 12 percent
(Adds further details, CEO, analyst comment)
LONDON, June 10 (Reuters) - British fund firm Liontrust Asset Management (LIO.L) said on Wednesday it posted a 25 percent fall in pretax profit as it attempts to rebuild after the loss of two of its star fund managers. Liontrust said the departures in April, coupled with volatile markets and withdrawals brought about a fall in full-year pretax profits to 12.4 million pounds ($19.95 million) at end-March, from the 16.5 million posted last year but slightly ahead of the 11.4 million pounds Reuters consensus.
The company slashed its dividend to 7.5 pence per share versus the 12.5 pence paid the previous year.
Assets under management fell to 1.9 billion pounds from 4.7 billion pounds at the same point last year. On June 9 assets under management had fallen further to 1.2 billion pounds.
Liontrust CEO Nigel Legge told Reuters outflows had stabilised since a spike when it was announced in January that fund managers Jeremy Lang and William Pattisson would be leaving the firm. The announcement also ended Liontrust's talks with prospective merger partners, he said.
The fund managers -- who left over "strategic differences" -- departed in April and have been replaced by internal fund managers Gary West and James Inglis-Jones as well as Anthony Cross and Julian Fosh.
"We have not lost a fund manager in 15 years, this is the first time it has happened to us. The most important thing is staff are planning for the re-build," Legge said.
SHARES FALL
"This feels like a very well capitalised re-start," he said. Liontrust has 22 million pounds in cash, which prompted broker Altium to retain its buy recommendation. "The group is well capitalised to rebuild," Altium said.
The market remained unconvinced though and the shares were 11.7 percent lower at 90 pence by 1423 GMT.
Legge said Liontrust is planning to launch global equity products to cater for a shift in pension scheme exposure from domestic to international.
Legge said fund manager Ben Fitchew was developing a global equity version of the existing European Cash Flow Solution range, which includes the Continental Europe Fund.
In addition, Legge said the company is looking for new hires. "We have a high prospect of attracting talent to run different types of global portfolios, like global value and global growth," he said.
The fund manager also said it has appointed non-executive director Adrian Collins as deputy chairman with a view to promote him when incumbent chairman, Bernard Asher, retires. "It is a handover period for however long it is appropriate," Legge said.
(For the Hedge Hub blog, visit: blogs.reuters.com/hedgehub/ For the Global Investing blog, visit: here) ($1=.6215 pounds) (Reporting by Cecilia Valente, Editing by Mike Nesbit)
