UPDATE 2-Liontrust outflows continue as new funds lined up

* Market movements keep AuM above 1 bln pounds

* Shares up as broker cheers arrival of GAM's Hollyman

* New fund launches planned in bid to halt outflows * Exiting mgrs Lang and Pattisson each earn nearly 4 mln stg

(Adds fund manager pay, updates shares)

LONDON, July 14 (Reuters) - British fund firm Liontrust Asset Management (LIO.L), which earlier this year lost two of its star fund managers, said clients had continued to withdraw money, but it plans new fixed income funds to help stem the tide.

Total net outflows were 902 million pounds ($1.47 billion) in the three months to June 30, and would have brought assets under management (AuM) below the 1 billion pound mark but for positive market movements.

AuM stood at 1.12 billion pounds at June 30, down from 1.2 billion at June 9. Performance fees bounced back from zero in the same period last year to reach 0.58 million pounds, almost entirely accrued from the firm's credit fund.

Liontrust has been battling the impact of the departure of star fund managers Jeremy Lang and William Pattisson, who ran most of the firm's assets. The move was blamed for a 25 percent drop in full-year pretax profits and also ended Liontrust's talks with prospective merger partners. [ID:nLA1057292]

The firm has tried to counter withdrawals sparked by that announcement with the hire of Ross Hollyman from Julius Baer's (BAER.VX) hedge fund business, GAM. He will join in January 2010.

"His appointment has been very well received by clients and investors," Liontrust said.

According to a separate filing, Pattisson earned 4 million pounds in the year to March 2009, including 820,000 pounds of severance pay.

Lang -- well known for the "Lang approach" to investing, which focuses on stocks with positive earnings surprises -- earned 3.9 million pounds, including 621,000 pounds of severance pay.

Public details of star stockpickers' pay are rarely available and relatively few have the type of deal Lang and Pattisson had, whereby they were remunerated based on a share of fund management fees on portfolios as well as on performance.

"BUY" RATING

Liontrust shares were up 1.1 percent at 113.5 pence at 1152 GMT and closed at 113.75 pence on Monday. Altium Securities upped its price target to 130 pence from 120 pence and kept its "Buy" rating on the stock.

The broker cheered the "positive" arrival of Hollyman.