Miton buys PSigma to add UK equity income expertise

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Miton Group has brought PSigma Asset Management in a deal worth up to £13m, adding UK equity income expertise to its offering.

Miton will pay PSigma’s parent company Punter Southall between £6.75m and £13m in a mixture of cash and ordinary shares for the asset management house, dependent on the scale of PSigma’s assets under management in two years’ time.

PSigma currently runs around £750m, with some 91 per cent of this coming from the UK income mandates built up by fund manager Bill Mott and managing director Ian Chimes.

An announcement by the two firms says the investment style of both fund management teams is complementary. It adds that the role of Mott and his team will be unchanged to provide continuity for PSigma’s clients.

In addition, Chimes will be placed at the helm of Miton’s enlarged UK sales and marketing operation.

Miton Group executive chairman Ian Dighé says: “Bringing Bill Mott and his team together with Miton is a significant step forward to the benefit of our joint client base, particularly in the UK equity income sector.

“Both businesses have distinctive and forward-looking investment strategies. With combined assets under management of £2.8bn, we will have an even stronger platform to accelerate the growth of our business.”

Bestinvest managing director for business development and communications Jason Hollands note that the deal represents a 37 per cent in Miton’s AUM and broadens its offering from multi-asset and small/mid-cap products.

“Miton has been progressively building out its business with the hire of Hugh Grieves and Nick Ford to manage a US product and George Godber and Georgina Hamilton to manage a UK value fund,” he says.

“It is encouraging to see a small, entrepreneurial business, where the CEO has a material stake, building out its proposition.”