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Miton's AUM surge 73.5% on back of PSigma acquisition
by James Phillipps on Mar 24, 2014 at 08:14
Miton Group saw assets under management surge by 73.5% to £3.1 billion in 2013 on the back of its acquisition of PSigma.
Pre-tax profits fell 22.2% from £900,000 to £700,000, although net revenues surged by 29.3% to £15 million, up from £11.6 billion in 2012.
The PSigma acquisition added £749 million in AUM with Miton seeing organic growth of £351 million net inflows into its funds and investment trusts. Miton paid an initial consideration of £6.75 million for the group and the total cost of the deal could rise as high as £13 million depending on AUM retained in June 2014 and 2015.
The surge in assets has prompted the group to raise its dividend by 20% to 0.54p per share, up from 0.45p in 2012.
The acquisition of PSigma saw Miton build a presence in the mainstream UK equity income sector as took on Bill Mott’s PSigma Income fund, while the year also saw it win two investment trust mandates. The £81 million Henderson Fledgling trust and the Investment Company were merged into Miton’s Diverse Income trust, managed by Gervais Williams (pictured).
Miton executive chairman Ian Dighé said that the sale of the group’s Liverpool fund management business to Seneca, which was announced in January, will initially lower AUM by £450 million, and is expected to complete on 31 March 2014.
He said: ‘The transaction both reduces our regulatory capital requirement and further boosts our free cash balances.'
The deal will increase Miton’s cash balance by £3.5 million initially with a further £1 million deferred over a two year period.
Dighé said: ‘Over the last three years the group has decisively scaled up for growth with some of the most highly regarded people in the industry joining the group. 2013 saw a step up in interest in our 'Beyond the credit boom' investment strategies which delivered significant organic growth.
‘As at 28 February 2014, total AuM stood at £3.2bn. We have made a good start to 2014 and therefore look forward to a year of further progress.’
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by James Phillipps on Jul 25, 2014 at 14:49