Miton forecasts for 2019 have been downgraded 20% as a result of market volatility, despite net inflows of £1.1bn for the year ended 31 December 2018.
In a trading update this morning, the boutique fund house said assets under management (AUM) climbed to £4.4bn, a 14.5% increase from £3.8bn the previous year. Net inflows were up 106% last year from £494m in 2017.
However, the full-year results obscure a more difficult final quarter.
Stuart Duncan, analyst at Peel Hunt, said: “Although Miton generated solid inflows in Q4, there is no escaping the impact of weaker market conditions. We downgrade FY19 forecasts by 21%.” Peel Hunt has reduced the target price for Miton to 60p from 73p.
Miton inflows in Q4 dropped to £92m, significantly lower than the £300m range in the previous three quarters, which Duncan said reflected market conditions.
David Barron, chief executive officer, said the firm is “well placed” as it enters 2019, despite uncertainties in global stock markets.
The update said overall financial performance for 2018 is expected to be in line with market expectations.
Fund assets climb
The LF Miton UK Multi Cap Income ended the year with £1.3bn, up 25%, while Miton European Opportunities AUM grew 101% to £364m. Following the launch of the LF Miton US Smaller Companies fund in March the US team now manages £626m, up 64% from last year.
Barron said: “We have generated strong fund flows in 2018 and net sales in excess of £1bn since the start of the financial year. These flows are testament to the breadth of our fund management capability, the strength of our distribution and the attraction of genuinely active fund management.
“This growth has been achieved despite the impact of the weak market performance in Q4.”
