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MAM first half revenue rises 8%

MAM first half revenue rises 8%

MAM Funds has reported revenue growth of 8% for the first six months of 2011 as it increased its funds under management by 9%, to £1.68 billion.

Revenue grew to £10.7 million in the period ended 30 June from £10 million last year, but although funds under management grew 9% from last year’s £1.54 billion, the figure was essentially flat on the end of 2010.

Underlying earnings per share up 32% to 1.57p from 1.19p in the first half last year.

Managing director Gervais Williams (pictured) attributed some of the outflows from the fund to the departure of Midas Capital founder and fund manager Simon Edwards, as investors who may not otherwise have left chose to part ways along with the manager.

However, he maintained:  ‘I think the underlying trends would have been adverse even without his departure, but on the other hand we have seen in flows.’

Funds under management were boosted by investor interest in the two Miton branded funds, Special Situations and Strategic, which grew by £71 million.

Shares MAM were standing still at 22p on the update at 9.35am.

MAM Funds also moved into the single strategy sector this year with the launch of the Diverse Income Trust.

Executive chairman Ian Dighé said: ‘Overall, MAM's funds have performed well in the volatile markets experienced so far in 2011.  Out of our eight OEIC funds, six were within the first and second quartiles over the three months to the end of June 2011 while our Select Assets, Balanced Growth, and Balanced Income funds were top quartile in the six months to end of June 2011.’

‘Importantly, our Special Situations and Strategic funds were up 0.01% and 0.21% respectively against a sector average down 7.88% across the period from 1 July 2011 to 31 August, 2011.  Our managers continue to invest with conviction across their specific asset classes,’ he added.

However, Dighé admitted the second half would be ‘challenging’, but said he believes volatility means more opportunities for investors to move away from ‘index hugging’.

‘Our fund management performance is strong and we are well placed to grow our funds under management. The recent market conditions highlight the opportunity for client focused fund management businesses to differentiate themselves to a greater degree through a willingness to step away from the closet index hugging mentality with deliberate asset allocation and stock picking decisions,’ he said.

The fund group reported underlying earnings per share up 32% to 1.57p from 1.19p in the first half last year.

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