Miton Group (MGR) announced last week after market close that star fund managers George Godber and Georgina Hamilton would be leaving the firm, reportedly for Polar Capital. The pair run the CF Miton UK Value Opportunities Fund (GB00B8QW1M42), which we recently tipped as a buy, following a period of stellar performance. But the message from analysts is that investors shouldn’t panic, particularly as Mr Godber has a 12-month notice period and Ms Hamilton six months.
The fund, which has £869m of assets under management, has delivered a 64 per cent total return for investors over the three years since launch. However commentators say investors should wait until the pair join their new home to switch.
Jason Hollands, managing director at Tilney Bestinvest, said: "Fans of these managers may well want to wait until they arrive at Polar before switching."
Darius McDermott, managing director of Chelsea Financial Services, said: “George and Georgina are a great double act who have worked together for about nine years now, first at Matterley and then at Miton.
"We've tipped them as up and coming managers in the past and it's not surprising that they have been of interest to other companies. They have long notice periods, though – especially George – so while the news is pretty big for investors in the fund, there is no need to rush and sell. They will continue to manage the fund for at least six months and will only leave earlier if Miton is successful in replacing them sooner."
Mr Hollands said: "It has looked like a boutique that’s going places, so it’s obviously going to be a bit of a disappointment to have lost that team.
“But do bear in mind that a portfolio won’t change overnight. However, it might be worth starting to think about alternatives.”
Investors Chronicle’s Simon Thompson suggested that a lot will depend on who Miton hires as replacement fund managers.
“Clearly, this is a blow and it’s only reasonable to expect some of Miton’s clients in its CF UK Value Opportunities strategy fund to follow Mr Godber and Ms Hamilton to their new employer in due course. In terms of damage limitation for the fund itself the key will be finding a credible replacement in order to win the support of existing clients to stem the flow.
"I would also flag up that Miton is not a one -rick pony and other funds have been showing strong momentum too. The CF Miton UK Multi Cap Income Fund saw significant inflows last year as assets under management increased from £378m to £586m by the December year-end. The Miton UK MicroCap Trust (MINI), which raised gross proceeds of £50m at launch on 30 April 2015, and a further £28m subsequently, has proved a rewarding investment too.”
