View the article online at http://citywire.co.uk/wealth-manager/article/a730104
Seneca aims to double assets through Miton deal
by Elsa Buchanan on Jan 28, 2014 at 12:45
Seneca Partners has ambitious plans to double assets under management over the next three years through its acquisition of Miton’s Liverpool fund business.
Seneca’s chief executive Stuart Eaton told Wealth Manager that the acquisition of the Miton Capital Partners, the Liverpool fund management business, for up to £6.4 million would give the firm a broader proposition and hopefully expand its reach with intermediaries.
'Our activities are peripheral to high net worth [HNW], and we do interesting things in Enterprise Investment Scheme (EIS) fund but all we have always wanted was a middle, more mainstream lower-risk business to complement our proposition,’ he said. ‘The sort of thing we do was never going to be more than 10% of their [HNWI’s] wealth.’
All Miton staff will be retained post the deal. ‘When we walk in the door, we don’t have existing fund managers, or existing staff in this space, so every Miton staff will be moving over,’ Eaton explained.
The Liverpool team of 14 includes Alan Borrows (pictured) and Richard Parfect, managers of the the £140 million CF Miton Distribution fund, Simon Callow and Mark Wright who run the £160 million CF Miton Diversified Growth fund. Callow and Borrows co- manage the £60 million Midas Income & Growth Trust. The team will report to Eaton.In 2013 the Liverpool business had £466 million in assets, which generated a gross revenue of £4.6 million. While Eaton explained the Miton business had been 'under-invested' on the sales and marketing side, he hopes to double total assets under management in three years through a combination of both organic and inorganic growth.
Eaton said the mandates will remain unchanged, but the Miton name will be dropped from the funds. They will be renamed the Seneca Distribution and Seneca Diversified Growth funds. Seneca already has a Merseyside office, alongside Leeds and Solihull.
‘I’ve always believed you need to be close to the clients, offer them access to the fund manager but they have not been out seeing the clients enough and not been marketing. Obviously at this stage, we need to get in that [this business], and kick the tyres,’ Eaton added.
‘It is a fantastic foundation on which to grow. The funds are quite low risk funds, so I think the environment now will hopefully play a bit more to their type of skill ’, Eaton said. ‘They can go into virtually every area because they are not massive, which is something the bigger funds cannot do.’
Eaton, who previously managed the Newton Managed fund until 2005 and Insight’s UK Equity Alpha team, said Seneca had been looking to acquire an 'appropriate' asset management firm since 2010 when the company was launched.
'Our activities are peripheral to high net worth [HNW], and are do interesting things in Enterprise Investment Scheme (EIS) fund but all we have always wanted was a middle, more mainstream lower-risk business to complement our proposition,’ he said. ‘The sort of thing we do was never going to be more than 10% of their [HNWI’s] wealth.’
News sponsored by:
As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.
Today's top headlines
The Citywire guide to investment trusts
Investment trusts have proved to be a highly effective way to invest in the market. Citywire has interviewed the experts to find out more.
With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop
More about this:
Look up the funds
- Newton Managed GBP Inc
- CF Miton UK Smaller Companies A Acc
- CF Miton UK Multi Cap Income Ret A Acc
- PSigma Income R Acc
- CF Miton Distribution Ret A Inc
- CF Miton Diversified Growth Ret A Acc
Look up the investment trusts
Look up the fund managers
More from us
On the road
J.P. Morgan Elect on investment growth, income and cash. More information on J.P. Morgan investment trusts.