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.

Related Fund Managers

Gervais Williams
Gervais Williams
5/83 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 68.44%
Bill Mott
Bill Mott
Citywire TV
Play Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

This week Brewin Dolphin's head of research talks to Mike Riddell, fund manager at Allianz Global Investors, about the forces driving bonds markets in a tumultuous week for markets.

Play Henderson's Hermon: how to be defensive in smaller caps

Henderson's Hermon: how to be defensive in smaller caps

Hermon, who manages the Henderson Smaller Companies trust, talks about he will tackle a 'challenging' 2016.

Your Business: Cover Star Club

Profile: 'what we are doing at Mosaic is Darwinian'

Profile: 'what we are doing at Mosaic is Darwinian'

The changes in financial services over the last few years may leave some destitute warns Marco Sambucci of Mosaic Money Management

Wealth Manager on Twitter