Institutional investors Pie Funds and Milford Asset Management are putting up $2 million for a stake in scented candle and beauty products maker Ecoya.

Brian Gaynor’s Milford Aggressive Fund, which has $70 million under management, has taken a 16.92% stake in NZX-listed Salvus Strategic Investments.

The acquisition, in a private off-market transaction disclosed to the NZX today, consisted of 3.4 million shares priced at 70c-a-share.

Milford bought the shares from Hubbard Churcher Trust Management, whose founder Allan Hubbard is currently battling to recapitalise his Timaru-based finance company South Canterbury Finance.

Media commentator and fund manager Brian Gaynor never shies away from having a crack at management fees so it will be interesting what he makes of Morningstar's assessment of his own KiwiSaver fund.

By and large the fund rating agency gave Milford's Aggressive portfolio the thumbs up in a recent assessment, noting that Mr Gaynor has maintained a bearish outlook on markets so the portfolio has been heavily invested in cash (around 70% since launch).

That helped the fund record a one year return of 8.13%, against the NZSX-50 index’s -25% return over the same period.

Boutique funds manager Milford Asset Management has grown its funds under management by 17 per cent over the past six months, to its highest level ever.

The company now holds $260 million on behalf of its mainly individual investor clients.

Milford executive director Anthony Quirk said it is extremely pleasing to see strong growth in funds under management given the volatility in the financial markets.