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Miton Value Opps exodus wipes out strong group inflows

Miton Value Opps exodus wipes out strong group inflows

The wave of redemptions triggered by the departure of Miton’s UK Value Opportunities managers offset “significant” strong net inflows seen by the asset manager in the first quarter.

In a trading update for the half year ending on June 30, Miton said first quarter net inflows had buoyed assets under management to more than £3bn by the end of March.

However, outflows following the announcement that popular UK Value Opportunities managers George Godber and Georgina Hamilton were to depart and join Polar Capital offset these, resulting in overall net outflows of £90m for the half year.

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“These inflows were offset in the second quarter primarily due to the outflows experienced on the Miton UK Value Opportunities fund,” the company said.

The fund had £388m in assets at the end of June, having topped £800m during Ms Hamilton and Mr Godber’s management.

The outflows, as well as investment performance, meant Miton had assets under management of around £2.5bn as of June 30, compared with around £2.8bn at the start of January.

Miton has since found a replacement for the duo, as Andrew Jackson assumed responsibility for UK Value Opportunities at the start of July.

The asset manager also announced a new remuneration system would come into place.

“The board recognises the importance of ensuring the retention and reward of high-quality individuals as a key part of the overall strategy for growth,” the company said.

“The current fund manager retention and incentive arrangement will be discontinued as the principal reward and retention mechanism for new fund managers and for those where no value has been accrued to date.

“The board is putting in place, from the second half of 2016, a new remuneration structure which is better aligned to current market practice.”