Premier Asset Management  

Premier outflows hit £246m before merger

Premier outflows hit £246m before merger

Premier Asset Management experienced net outflows in the two consecutive quarters leading up to its merger with Miton Group.

In a trading update, published today (October 10), Premier reported net outflows of £246m in the three months to the end of September compared to inflows of £120m the same period the year before.

The merger of the two mid-tier UK fund management companies was announced at the beginning of September, with distribution marked as the driving factor behind the partnership.

Premier's latest update showed the firm had experienced net outflows in the last two quarters after its assets under management had dropped by about £50m in the previous quarter.

Total net outflows for the year to September 30 were £233m, compared to £734m of inflows in the year to September 2018.

The firm also reported a drop in its assets under management of £184m, down to £6.5bn, in the three months to September.

By comparison, Miton reported an increase in assets under management of £400m for the six months of the end of June 2019.

Chief executive Mike O’Shea put the outflows down to a “background of economic and political uncertainty”, but stood by its active management of funds to achieve “good long-term investment outcomes” which positioned the firm well for “future growth”.

The combined company, set to be called Premier Miton, will reach assets under management of £11.2bn.

Today’s results showed the all-share merger was now approved by shareholders, with the combined firm expected to be live by November 14.

Mr O’Shea said: “We are pleased that the shareholders of Premier and Miton have approved the all-share merger between the two companies and we are excited about the opportunities for the new enlarged Premier Miton Group. 

“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, with reported pro-forma combined assets of £11.2bn.”

imogen.tew@ft.com

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