23rd Sep 2019 09:57
(Alliance News) - Miton Group PLC on Monday reported a rise in interim funds under management, boosted by market movements and despite modest outflows.
At June 30, the fund manager reported assets under management of GBP4.72 billion, 7.8% ahead of the GBP4.38 billion seen six months earlier.
Miton said the asset growth was driven by market movements and investment performance.
During the first half, Miton suffered GBP82 million in net outflows, with GBP80 million coming from its multi-asset funds.
"In common with much of the industry, the group experienced outflows from the UK equity funds, reflecting both wider concerns about the UK market and the divergence in returns from different parts of the market post the 2016 Brexit vote," Miton explained.
The fund manager's investment performance and market movements, however, added GBP430 million in funds. Miton's equity funds added GBP372 million through market movements and investment performance.
"The first half of 2019 saw the group continue to deliver against its strategic objectives with further organic growth driven by positive market movements and investment performance; the business has become more diversified over the past two years and we now have four portfolio management teams, each managing in excess of GBP600 million, all with significant further potential. We have a range of further strategies which have scope to grow," said Chief Executive David Barron.
Miton said its trading in the first half was in line with its own expectations, with pretax profit slipping 7.1% to GBP3.9 million. The fund manager's fees grew 10%, however, to GBP14.1 million.
At the beginning of September Miton agreed a merger with peer Premier Asset Management Group PLC, creating a business with assets of over GBP11 billion.
Following the merger, Miton shareholders would own around 33% of the new business, which will continue to trade on London's AIM as Premier Miton Group PLC.
Barron added: "We believe that the proposed combination with Premier will result in a broader investment offering to address the needs of a wider range of clients and create a platform better positioned for future growth than Miton could achieve on a stand-alone basis in the short term."
Miton has declared a 4.9 pence special dividend, conditional on the Premier Asset Management deal becoming effective. The deal is expected to be complete in the fourth quarter of 2019.
Shares in Miton Group were 1.8% lower in London on Monday morning at 55.00 pence each.
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