logo-loader

Miton Group under pressure as volatile equity markets hit inflows

Published: 09:08 18 Jan 2019 GMT

Trading screens
Fourth quarter took the gloss of Miton's year

Weak equity markets have taken a toll on small-cap fund manager Miton Group PLC (LON:MGR) with a sharp slowdown in new money incoming in the final months of last year.

Funds under management rose 14% to £4.4bn in 2018 but a £1bn inflow of new money was countered by a £466mln decline in the value of Miton’s portfolio of funds, all of which was in the final three months.

READ: Miton Group shares jump as it increases assets under management by 35%

Net inflows also dropped to £92mln from over £300mln in each of the previous three quarters.

Earnings for the 2018 year are expected to be in line with expectations but brokers have said they will cut forecasts substantially for 2019 as the weak fourth quarter washes through.

Peel Hunt expects to lower its 2019 estimate by 15-20% though it adds Miton did still generate inflows in its fourth quarter which was a strong result given outflows seen elsewhere.

The broker has cut its share price target to 60p from 73p.

Shares fell 6% to 49.5p.

HANetf founder and co-CEO discusses shift to active management in ETF market

HANetf founder and co-CEO Hector McNeil tells Proactive's Stephen Gunnion about shifting trends in the exchange-traded fund (ETF) market in the United States, indicating a big move towards active management within ETFs. Despite the European market lagging behind the US by three to five years,...

12 hours, 55 minutes ago