Miton’s assets under management jump despite fund outflows
Miton Group has reported an increase in assets under management (AGM) for the first half despite slipping back to net outflows, which the asset manager blamed on political uncertainty related to Brexit.
The company reported an eight per cent increase in AUM, which were £4.7bn at the end of the first half.
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Miton reported net fund outflows of £82m for the six months ending 30 June, which said was a “disappointing” result.
Pre-tax profit slipped just over seven per cent to £3.9m, down from £4.2m for the same period last year, which Miton said was due to changes to fund manager remuneration.
The asset manager reported an increase in net revenues, which rose just over 10 per cent to £14.1m.
Commenting on the results, chief executive David Barron said: “The first half of 2019 saw the group continue to deliver against its strategic objectives with further organic growth driven by positive market movements and investment performance”.
Miton announced it had agreed an all-share merger with Premier Asset Management earlier this month. The newly-formed entity will be known as Premier Miton Group, and will have £11.5bn AUM.
“We believe that the proposed combination with Premier will result in a broader investment offering to address the needs of a wider range of clients and create a platform better positioned for future growth than Miton could achieve on a stand-alone basis in the short term,” said Barron.
Peel Hunt analysts said the results were “largely as expected”, and that “market conditions remain challenging”.
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“The key focus remains the merger with Premier, which will create a larger, more diverse business,” they added.
Miton’s shares were down just under one per cent in late morning trading to 55.5p.
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