Liontrust Asset Management has entered into a deal to buy the European income fund management business of Argonaut Capital Partners, adding nearly £300m of assets onto its books.

Two Argonaut funds - the European Income Fund and the European Enhanced Income Fund – will operate under Liontrust once the deal is complete.

Olly Russ, current manager of both vehicles, will switch to Liontrust as head of European income.

Argonaut, which manages £1.4bn of assets, split from its founding partner Ignis in 2012.

Lionstrust described the purchase as a “highly complementary acquisition” boosting its equity income offering at a time of growing demand through increased longevity and pension freedoms.

It came as the business issued a pre-close update for the year to March 2016, which was broadly in line with expectations.

Total assets under management increased to £4.8bn, up 7% on March 2015, with net inflows for the year of £255m.

Two thirds of Liontrust’s assets under management are retail in nature, although the firm also markets its funds to institutional investors.