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This small cap asset management specialist is doing really well
Thursday 12 Jul 2018 Author: David Stevenson

Miton (MGR:AIM) 66p

Gain to date: 58%

Original entry point: Buy at 41.75p, 5 April 2018

Our confidence in asset management minnow Miton (MGR:AIM) continues to pay off as the company pleases with its latest update on assets under management (AUM).

On 9 July the company revealed that its AUM had increased by 35% in a year to £4.5bn.

Investors are pouring money into Miton’s products, £616m in the first half to 30 June. This represents seven consecutive quarters of positive net flows, a great result given the market ructions in February.

Broker N+1 Singer is also impressed with Miton’s performance, upgrading its 2018 earnings per share figure by 11% to 3.9p and its net cash forecast by 3% to £24.4m.

It has hiked its estimate for dividend per share by between 11% to 17% for the coming years. This adds up to a prospective dividend yield for 2018 of 2.4%.

While Miton is primarily an equities manager, it does have some multi-asset products as well but no pure bond funds. However, the positive flows were mostly across the board, with just a small outflow for its investment trusts to the tune of £27m.

One risk particular to Miton is its focus on small caps. As this company continues to grow it may find that strategies that work on small caps are harder to replicate in different areas of the market.

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