Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. 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
Play Investment Pulse: the highs and lows of 2014

Investment Pulse: the highs and lows of 2014

This week's Investment Pulse looks back at some of the biggest stories of the year as well as looking forward to 2015.

Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter