Premier assets down amid 'challenging conditions'

Premier assets down amid 'challenging conditions'

Premier Asset Management has cited "challenging conditions" for the investment industry as it reported lower client funds than at this point last year.

The London-listed manager said its assets under management had fallen slightly from £6.8bn to £6.7bn over the course of the 12 months to the end of June.

Investors withdrew a net £55m from the company’s funds in the second quarter of 2019, although over the 12 months to the end of June 2019 the company received net inflows of £133m.

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Mike O'Shea, Premier's chief executive, said the last three months had been "a continuation of challenging conditions for the investment industry, including record low industry retail net flows".

Premier’s assets hit £6.1bn at the end of September 2017 but in November the following year the company’s annual report cited Brexit as a brake on fund flows at the start of 2018. However, the company’s assets reached £6.9bn at the end of that year’s third quarter.

Mr O’Shea highlighted that 84 per cent of Premier’s assets performed above the median industry level over the five years to the end of June, net of fees, according to FE Analytics. This figure did not include absolute return funds, property securities fund, investment trusts and segregated mandates.

He said: "Notwithstanding the challenging industry headwinds, we continue to believe that our focus on relevant products, good investment outcomes after charges and a strong distribution
capability means our business remains well positioned for the future when sentiment improves."