MAM Funds balance out in tough market

MAM Funds, the UK-based multi-asset fund manager, has reported that its sales for 2011 have held firm through tough market conditions.

Funds under management at 31 December 2011 were unchanged over the year at £1.7 billion. MAM says sales of Miton funds were “largely matched” by redemptions from Midas funds.

MAM says: “The strong sales of Miton funds in the second half of the year were largely matched by expected redemptions from Midas funds. In addition, in a difficult market environment the successful launch of the Acuim UK Multi Cap Income Fund attracted over £10m during the final quarter.” 

The firm expects profits to be “materially ahead of current market expectations driven by revenue outperformance and cost control”.

MAM Funds manages eight OEICs, three investment trusts and segregated client accounts under three brands: Miton, Midas and Acuim. 

Investors welcomed the trading update, pushing its share price up 13%. Last year was “a year of restructuring and reinvestment”, MAM said, following a rebranding at end of 2010.

A £20m equity issue, repayment of all long-term borrowings and establishment of a new experienced management team with upgraded marketing and distribution capability have made 2011 a turnaround year for the firm.  

Amortisation is expected to be in line with prior years, while exceptional items are expected to include £1 million in respect of restructuring costs.

The Group starts 2012 with a higher level of annualised costs. MAM says it expects the impact of this is to be offset by “higher revenues from modestly increased funds under management within the context of prevailing market conditions”.

Former Gartmore fund manager Gervais Williams (pictured) joined MAM as managing director at the end of 2010, after Midas Capital and Miton Asset Management were rebranded as MAM Funds. 

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