23rd May 2019 11:09
LONDON (Alliance News) - Premier Asset Management Group PLC said Thursday its assets under management closed the first half lower as it struggled in the "challenging" UK retail sector.
At March 31, the UK retail asset management group reported assets under management of GBP6.79 billion compared to GBP6.87 billion at September 30, a 1.2% decrease. Premier noted its assets under management were up 6.6% year on year.
Premier's assets under management at the close of the first quarter, the three months to December 31, were down 6.3% on its assets reported at September 30. The company rebounded in the second quarter, however, seeing its closing assets 5.4% higher than its opening assets in the three month to March 31 period.
In the six months to March 31, Premier saw net inflows of GBP67 million.
"Inflows continue to be affected by low levels of investor confidence but despite this, we are pleased that the second quarter was the 24th successive quarter of positive net inflows into our funds," the company said.
Premier's total net inflows for the rolling twelve months to March 31 were GBP390 million, half the GBP847 million seen for the previous twelve month period.
The asset manager reported a negative investment performance of GBP139 million in the first half. In the first quarter, Premier's investment performance shed GBP486 million from the company's managed assets, but this was partially offset by a GBP347 million positive performance in the second quarter.
"Our business environment continues to be dominated by political uncertainty and low investor confidence, resulting in record low levels of UK investment industry net retail sales. Against this challenging backdrop, we are pleased to have recorded two quarters of positive net sales," said Chief Executive Mike O'Shea.
Premier recorded total sales of GBP866 million in the half-year but saw redemptions of GBP799 million.
"During the period we strengthened our product range by launching three new multi-asset funds, designed to attract a broader range of investors. We continue to believe that our focus on relevant investment solutions for UK retail investors, including our range of fifteen multi-asset funds, means that as investor confidence returns, we are well positioned for the future," added O'Shea.
Premier declared a second quarterly dividend of 1.70 pence, 3.0% higher than the 1.65p distributed for the same period last year.
Premier's pretax profit in the half was down 8.8% to GBP7.2 million from GBP7.9 million the year before.
Shares in Premier Asset Management were untraded Thursday but last closed at 206.00 pence each.
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