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Investors flee Premier Miton during merger

Investors flee Premier Miton during merger

Investors pulled more than £200m from fund houses Premier Asset Management and Miton Group as the two firms merged.

In a quarterly update to the stock exchange, published today (January 10), Premier Miton reported net outflows of £222m for the three months to December 31, compared with inflows of £65m for the same period last year.

The merger of the two mid-tier UK fund management companies completed on November 14, creating an £11.2bn fund house.

Shareholders of Premier, which listed on the Alternative Investment Market in 2016, own 66 per cent of the combined company, with Miton shareholders owning the remainder.

The merger was announced at the beginning of September, with distribution marked as the driving factor behind the partnership.

Today’s results show the firm’s assets under management had increased £400m from the merger date to £11.6bn as at December 31.

But during Q4 2019 investors pulled cash from every asset class at Premier Miton, with multi-asset funds taking the biggest hit.

The fund house reported net outflows of £119m from multi-asset funds in the period, while equity funds and fixed income mandates experienced £57m and £46m of outflows respectively.

Mike O'Shea, chief executive officer, said: "We are delighted that the merger between Premier Asset Management Group and Miton Group was completed mid-way through the period under review. 

“Although it is still early days, progress has been swift in terms of creating the management structure for the new group and the planned synergies are now underway.”

Mr O’Shea said investor confidence was likely to improve in 2020 as political uncertainty lifted, adding that against a more favourable background the combination Premier Miton’s broad product range and strong investment performance — and its enlarged distribution and marketing capabilities — meant the firm was “well placed” for future growth.

imogen.tew@ft.com

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