28th Nov 2019 11:20
(Alliance News) - Recently merged Premier Miton Group PLC saw its assets under management fall over financial 2019 due to a "more difficult year" for the UK funds industry.
For the 12 months to September 30, the funds relate to Premier Asset Management. After period-end, the asset manager merged with peer Miton Group PLC.
Premier Miton closed the period to September 30 with AuM of GBP6.56 billion compared to opening the financial year with GBP6.89 billion, a decrease of 4.8%. At October 31, funds under management stood at GBP11.1 billion, following the Miton merger.
Premier's net outflows totalled GBP233 million, following GBP1.83 billion in redemptions, up 21% on the year before. Sales, down 29% year on year, only added GBP1.59 billion.
Previously, Premier had seen six straight years of net inflows. The asset manager blamed the "continued economic and political uncertainty" hurting investor confidence, resulting in the increased outflows.
Chief Executive Mike O'Shea said: "This has been a more difficult year for the business and indeed for the UK funds industry generally, with investment decisions largely on hold while investors wait for clarity over Brexit."
Chair Mike Vogel added: "We believe that a significant factor influencing our results was that our core investment strategies fell out of favour as investors stayed on the sidelines amid turbulent market and political conditions. General investor uncertainty and a lack of confidence to invest in stock market linked investments was reflected, for example, in high industry inflows into bond funds. Where investors did choose equities, there was an aversion to UK equity assets in favour of more global strategies. Our view is that this is likely to be a shorter-term response to the current market climate as opposed to a secular trend.
"Although it is disappointing to have recorded net outflows for the year, we continued to record positive inflows into our range of outcome based multi-asset funds. Importantly, we continue to believe we have a strong foundation for future growth, based on relevant products, effective distribution, a strong brand, our scalable operating platform and our financial strength."
As a result, pretax profit was down 14% year on year to GBP13.7 million on flat revenue of GBP48.6 million.
The asset manager paid a total dividend of 10.50 pence, up 2.4% on the 10.25p paid out the year before.
O'Shea noted his "excitement" going forward following the Miton merger.
"The merger will create a diversified active UK asset manager with a strong investment capability that benefits from a more efficient platform and greater financial strength," he added.
"Premier Miton's blend of outcome-based multi-asset strategies and genuinely active single strategies, run by highly regarded teams, and supported by enhanced distribution is a unique proposition, which we believe will be highly attractive for advisers and wealth managers."
Shares in Premier Miton were 5.0% lower in London on Thursday at 160.10 pence each.
By Paul McGowan; [email protected]
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