UK Value Opportunities outflows see Miton assets decline

UK Value Opportunities outflows see Miton assets decline

Miton Group has seen assets under management fall £242m to £2.54bn in the six months to June 30 2016 as outflows from the CF Miton UK Value Opportunities in the second quarter and market volatility offset flows into investment trusts.

The half year results noted assets under management had increased compared to the £2.3bn recorded in June 2015, while adjusted profit before tax for the six months was £3.1m compared with £800,000 for the same period the previous year.

In the statement executive chairman Ian Dighe explained: “Strong inflows in the first quarter saw the AUM rise to £3.03bn. However, these gains were more than offset in the second quarter due to net outflows of £423m experienced from the CF Miton UK Value Opportunities Fund and market volatility immediately after the EU Referendum vote at the end of June.”

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Outflows from the fund followed the resignation of managers George Godber and Georgina Hamilton in April, although Miton appointed Andrew Jackson from EdenTree as a replacement manager starting July 1 2016.

Meanwhile the group’s most recent proposition, the CF Miton European Opportunities fund, has grown to £71m AUM as of August 31, following it’s launch in December 2015, while the Miton UK MicroCap Trust raised an additional £28m through a C share issue in February.

The group’s investment trusts fared better in the first half of the year, recording net inflows of £28m in the period, although this was not enough to offset the net outflows of £101m in the group’s equity funds and £17m of net outflows in the multi-asset funds, although multi-asset was the only range to deliver positive performance of £18m in the six month period.

Mr Dighé added: “Since the half year end we have regained asset growth momentum, most pleasingly in our multi-asset fund range through a combination of inflows and performance. Our focus remains on continuing to grow assets by delivering distinctive active management of our funds, whilst keeping a tight control of costs. Overall, we have confidence in the outlook for the year as a whole.”