Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Miton's AUM surge 73.5% on back of PSigma acquisition

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.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: Yuan direction

Brewin's Gutteridge: Yuan direction

This week Brewin Dolphin's research head chats to Fidelity Asian Investment Directors Jenny Lee and Gary Monaghan about the big changes in China.

Play On the Road Challenge: horsing around on the polo pitch

On the Road Challenge: horsing around on the polo pitch

Libby Ashby takes to the polo pitch with Stuart Leigh-Davies from Redmayne-Bentley for an 'On the Road' challenge.

Brewin's Gutteridge: where Miton's Godber sees value

Brewin's Gutteridge: where Miton's Godber sees value

This week Brewin Dolphin's research head talks to George Godber, co-lead fund manager of the Miton UK Value Opportunities fund, about value investing.

Your Business: Cover Star Club

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Rathbones’ Glasgow office has only been open for three months but the team, led by Angus Kerr, has already attracted new clients

Wealth Manager on Twitter