3rd Oct 2014 06:34
LONDON (Alliance News) - Miton Group PLC Friday said an institutional client has decided to terminate a UK equity income mandate it runs, following the announcement of the retirement of Bill Mott, who joined with the acquisition of PSigma last year.
In a statement, the fund management group estimated that the termination will reduce net revenue by GBP1.1 million in calendar 2015. On October 1, the mandate amounted to GBP325.6 million of assets under management, Miton said. The termination will take effect from November 2014.
The terms of the sale and purchase agreement, dated July 2, 2013, for the acquisition of PSigma Asset Management Holdings Ltd and its subsidiaries required a final deferred consideration payment of up to GBP3.75 million to be payable after July 2015. Miton said it is now unlikely that any further payment under that agreement will be required.
According to Miton Group's first-half results, published on September 25, the news of Mott's retirement had led to some redemptions within the PSigma Income fund in the first months of the second half.
Mott's retirement from the group was announced in July. He is due to step down at the end of the year.
Miton Group shares Thursday closed at 35.75 pence.
By Samuel Agini; [email protected]; @samuelagini
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