A range of new fund launches helped fund house Miton to a 35 per cent increase in assets under management, including the largest increase in net inflows in the group’s history.
David Barron, Miton's chief executive, said said the numbers in the company's half-year results took the business to seven straight periods of net inflows.
He added the inflows had been driven by the launch of US and European funds earlier this year.
Miton’s assets under management at the end of June were £4.5bn, compared with £3.3bn for the same six month period in 2017.
The company had suffered from the departure of high profile fund managers, which led to outflows from the products they ran.
Mr Barron said a priority for the business had been to diversify the range of products Miton offered and have those products run by a broader number of individuals.
In 2016 Miton’s share price fell 30 per cent in a single day when fund managers George Godber and Georgina Hamilton resigned and moved to Polar Capital.
The fund they ran, Miton UK Value Opportunities, shed £250m in assets in the months after the pair left.
Total profits were £4.2m, an increase of 75 per cent on the previous year, and Miton has total cash of £21m, which it will use on a share buyback scheme.
Mr Barron said the rise of passive investment products had to a major extent been prompted by the prevailing low interest rate environment, active fund managers must acknowledge passive investing was "here to stay", meaning there would continue to be pressure on fees.
david.thorpe@ft.com
