17 Jan 2017 07:00
MITON GROUP PLC
YEAR END TRADING UPDATE
NOTICE OF RESULTS
Miton Group plc (the "Company" or "Group"), the AIM quoted fund management group, today reports a trading update ahead of the announcement of its final results for the year ended 31 December 2016 (the "Year") which are expected to be issued on 16 March 2017.
Highlights
· £2,905 million closing Assets under Management ("AuM"), up from £2,784 million at the start of 2016
· Average AuM for the year was £2,783 million (2015: £2,319 million), an increase of 20%
· Renewed momentum with £91 million of net inflows in the second half of 2016
· Adjusted Profit before tax is expected to be at least in line with expectations
· £21.3 million of cash balances as at 31 December 2016 (2015: £14.1 million)
Assets under Management
Opening AuM 1 Jan 2016 £m | H1 Net flows £m | H2 Net flows £m | Annual Net flows £m | Market / investment performance £m | Closing AuM 31 Dec 2016 £m | |
Equity funds | 1,834 | (101) | (80) | (181) | 61 | 1,714 |
Multi-asset funds | 477 | (17) | 171 | 154 | 41 | 672 |
Total funds | 2,311 | (118) | 91 | (27) | 102 | 2,386 |
Investment trusts | 473 | 28 | - | 28 | 18 | 519 |
Total | 2,784 | (90) | 91 | 1 | 120 | 2,905 |
Progress - funds
· The CF Miton UK Multi Cap Income Fund had another solid year of performance with AuM growing from £586 million to £755 million.
· The CF Miton European Opportunities Fund was launched on 14 December 2015 and gained significant traction with AuM ending the year at £82 million.
· Strong growth in the multi-asset fund range. The combination of good outcome-driven performance coupled with a focused distribution effort has seen the funds' collective AuM grow by 41% to end the year at £672 million.
· The CF Miton US Opportunities Fund reached its three-year track record in March 2016 and has maintained first quartile performance since inception. AuM increased by 85% to end the year at £238 million.
· Miton UK MicroCap Trust plc built on its successful launch in April 2015 with a further C share issue in February 2016 raising additional gross proceeds of £28 million.
· The Group's product range of fourteen funds and investment trusts has continued to deliver strong performance. Eight of the funds / investment trusts are in the first quartile and four are in the second quartile of their respective sectors since launch or manager tenure.
Progress - people
· Andrew Jackson joined the Group on 27 June 2016 and assumed responsibility for the management of the CF Miton UK Value Opportunities Fund from 1 July 2016. Inevitably the change to the fund managers led to redemptions, however, these have now reduced and Andrew has delivered strong second quartile performance since taking on the Fund.
· Jim Wright joined yesterday to further diversify the Group's product range with the pending launch of a new fund specialising in global equity infrastructure.
Progress - corporate
· On 22 December 2016 the Group announced a share buyback programme to match the number of shares issued to participants of the Growth Share Plan and manage the dilutive effect on existing shareholders. The buyback is expected to commence in January 2017.
Outlook
Over the past year, Miton has continued to build its distinctive identity as a genuinely active fund manager. The Group continued to grow through a combination of net fund inflows and strong market / investment performance, despite the loss of a fund team earlier in the year.
The Group remains a well-capitalised and resourced business with significant expertise and a product range that is increasingly relevant to clients. By continuing to build on the product launches of the last four years, offering a strongly differentiated approach and broadening our range of funds, we have confidence that we can deliver significant growth.
Ian Dighé, Chairman of Miton Group plc, commented:
"The combination of our genuinely active investment approach, high operational standards and strong financial foundations means we can take full advantage of our hard-won market position. Growth in our average Assets under Management and controlled operating costs are now delivering enhanced profitability and robust cash generation. The substantial net inflows in the fourth quarter mean the Group has real momentum as we move into 2017."
ENDS
For further information, please contact:
Miton Group plc 020 3714 1500
Ian Dighé
Gervais Williams
MHP Communications
Reg Hoare / Simon Hockridge / Charlie Barker 020 3128 8100
Peel Hunt (Nominated adviser and Broker) 020 7418 8893
Guy Wiehahn / Rishi Shah
www.mitongroup.com
Notes to Editors:
Miton Group plc (referred to as the "Company" or "Group"), is an equity and multi-asset fund management specialist. As at 31 December 2016 the Group managed £2,905 million of assets including eight OEICs, two unit trusts and four investment trusts under the Miton brand.