Miton Group’s assets under management have taken a hit from the departure of star fund managers George Godber and Georgina Hamilton in April, the asset manager’s first half results reveal, as it reveals it is reevaluating its remuneration package.
Miton says asset under management fell over the first half of the year, from £2.8bn to £2.5bn as assets in the UK Value Opportunities fund more than halved from £783m to £388m in the second quarter.
As a result of the fund managers’ departure, Miton is also putting into place a revised remuneration structure to ensure fund manager retention.
It said the current fund manager retention and incentive arrangement will be discontinued as the principal reward and retention mechanism for new fund managers and those “where no value has been accrued to date”.
From the second half of 2016, Miton will introduce a new remuneration structure which is “better aligned to current market practice”. It said the new practice will not require the issuance of Miton shares.
Former Edentree’s Andrew Jackson has took over the management of the fund on 1 July.
Elsewhere, Miton said the UK Multi Cap Income fund saw continued net inflows over the half year with assets increasing from £586m to £641m for the period while the European Opportunities fund, which was launched in December 2015, and achieved “significant traction” reaching £65m assets under management.
Miton managing director Gervais Williams says: “The group is well positioned with a range of first-class funds to deliver performance for our clients and create value for our shareholders. By continuing to deliver distinctive strategies for our clients through genuinely active management and clear communication we will build on the strong foundations that have now been established.”
The group said despite market have been “particularly unsettled” by the EU vote, the business will continue to be focused on UK investors rather rather than on passporting UK funds to overseas markets.
Chairman Ian Dighé says: “We continue to focus on the operational strength of our business to plan for future AUM growth and ensure the continued prosperity of the group.”