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Premier posts jump in fund sales despite election turmoil

Premier posts jump in fund sales despite election turmoil

Premier Asset Management saw an uptick in flows towards the end of last year, despite its chief executive admitting it was a tricky environment for fund sales.

The group posted net inflows of £140m for the three months ending 31 December, up from the £95m seen between July and September.

When looking at the twelve months to 31 December, net inflows reached £684m, representing the 15th consecutive quarter of positive sales.

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Total assets under management climbed 4 per cent in the final three months of last year, hitting £5.2bn from the £5bn posted in the previous quarter.

At the start of October, Premier confirmed its intentions to float on the stock exchange, offering £64m of shares.

Mike O'Shea, chief executive of Premier, said October to December was “overshadowed” by the US election.

“Although the early reaction of most major equity markets was to head higher, the uncertainty this created made for a generally difficult environment for fund sales,” he said. 

Yet Mr O’Shea pointed to the company’s increase in assets under management and said it was “reassuring” to see these performance numbers. 

‘’Looking forward we expect the political, economic and business environment to remain uncertain as we head into 2017, and therefore we believe the market for fund sales will continue to be very competitive.” 

Despite this, the Premier Asset Management boss was confident the firm’s strategy and distribution model positions it well to deliver to fund investors and shareholders.

Later this month, the company expects to announce its first interim dividend for the three months to December with a payment date in early March 2017.