Miton Group has reported an 8% rise in assets under management in the first half of 2019, despite net outflows from its funds of £82m, as Brexit affected inflows.
As at 30 June 2019, AUM stood at £4.7bn, up from £4.5bn in the same period a year earlier, while the group announced continued growth in net revenues which increased by 10% over the comparative period to £14.1m.
The group reported a dip in pre-tax profit in the first six months of 2019 to £3.9m, down from £4.2m in the same period in 2018, which it said was expected and reflected "the alignment of all fund manager remuneration to the revenues and performance of the group from 1 October 2018".
Premier AM and Miton to merge into £11.5bn business
David Barron, chief executive of Miton Group, said that following several quarters of "very strong inflows it is disappointing to report on a period when fund flows were modestly negative".
"In the financial year 2018, we saw inflows into our UK equity funds of £0.43bn. This pattern of inflows into our funds slowed in the final quarter of last year, a trend which has become more established in the first half of this financial year," he added.
In its half-year results, Barron also said the disparity in performance of different parts of the UK stock market had become more pronounced, with its largest fund, LF Miton UK Multi Cap Income, now ranked in the fourth quartile of funds in the IA Equity Income sector over one year to 30 June 2019.
While the group announced "modest outflows" across its range of funds, it reported further growth in its funds investing outside the UK during the period.
There were positive inflows into its three most recently launched equity funds, LF Miton European Opportunities, LF Miton Global Infrastructure Income and LF Miton US Smaller Companies.
Barron added: "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; the business has become more diversified over the past two years and we now have four portfolio management teams, each managing in excess of £600m, all with significant further potential.
"We have a range of further strategies which have scope to grow."
Earlier this month, the group announced it had agreed the terms of an all-share merger with Premier Asset Management which will complete in the fourth quarter of 2019 and is expected to have combined AUM of £11.5bn.
