Oct 18 (Reuters) - British asset manager Liontrust Asset Management on Wednesday reported net outflows of 1.6 billion pounds ($1.95 billion) for the three months to September on weak investor sentiment due to higher interest rates.

"Liontrust has been impacted by our bias towards equities, the quality growth style, mid and small caps and the broad negative sentiment towards the UK," it said in a statement as it also reported a 6.3% decline in assets under management.

The events highlight the importance of the group's strategic objectives of diversifying its product and geographic mix, its chief executive, John Ions, said in written remarks.

His comments come after a failed attempt by Liontrust to acquire ailing Swiss rival GAM.

"The proposed acquisition of GAM would have accelerated our strategic objectives; without GAM, they do not change and our belief in them has only strengthened," Ions said. ($1 = 0.8203 pounds) (Reporting by Yadarisa Shabong in Bengaluru Editing by Bernadette Baum)