Asset management group Miton is investing heavily in its data management and analysis as it seeks to build on 2018’s record-breaking inflows.
The injection is in addition to its spending on traditional infrastructure such as sales and physical marketing.
Speaking to Wealth Manager following full-year numbers showing net inflows up 106% to above £1 billion, chief executive David Barron said the firm plans to boost growth via digital distribution.
The big increase in client contributions fuelled a 14% rise in assets under management from £3.8 billion to £4.4 billion, with adjusted pre-tax profit 34% higher at £9.2 million.
Barron (pictured) said: ‘As Miton came together in its current guise, we’ve always recognised that to be successful you have to invest in distribution both on the ground with sales people as well as in the infrastructure, so we always had a strong marketing presence.’
After rebuilding its website two years ago, the firm brought in a new digital analyst to work with data to help target new clients. It also overhauled its customer relationship management software to better understand client behaviour.
‘We have done more web-type activities to reach people,’ Barron added.
‘It’s difficult because of the way sales come in through platforms, but we are trying to join the different pieces of the jigsaw, and we are doing a lot of little things that come together and help us give our clients what they want.’
Miton is also focusing on roadshows in London and Edinburgh.
Attracting participants has become a lot easier since the firm widened its product range with three new mandates in two years – the Balanced Multi Asset, US Smaller Companies and Infrastructure Income funds – and revamped its multi-asset range in 2014.
‘The time of people attending is precious, but what we have now is a much boarder, deeper fund range. Investors are now really interested to come along.’
Although a new offering is not officially on the cards, the asset manager is constantly looking into creating new products that will further diversify its existing 13 strategies, Barron said.
‘If you have good active share and you deliver something that helps asset allocators, as well as correlation and risks, you can continue to see good business.
‘Our fund range has been set up since 2011, so we don’t have a legacy business but a modern product range.’
In its full-year results, the firm also announced that fund managers will be rewarded via a revenue-based structure. The move is expected to add around £1.8 million to expenses going forward.