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Investors continue to flee Premier Miton post merger

Investors continue to flee Premier Miton post merger

Investors pulled more than £160m from fund house Premier Miton during its first quarter since the merger of Premier Asset Management and Miton Group has completed.

In an update, published today (April 9), Premier Miton reported net outflows of £167m for the three months to March 31, compared with positive inflows for the same period last year.

Investors already responded to the merger of the two mid-tier UK fund management companies by pulling £222m from Premier Miton in the three months to December 31.

The merger was announced at the beginning of September last year and completed on November 14.

But Premier Miton reported today post-merger integration was progressing “in-line” with management expectations.

The results also showed its assets under management had increased to £9.1bn as at March 31 this year, up from £6.8bn in March 2018. 

But the fund manager’s assets fell 21 per cent over the three months to March — having reported Aum of £11.6bn in December — through a combination of outflows and market falls.

Premier Miton said it had continued to expand its fund range with the launch of the Premier Managed Index Balanced fund and had made a number of good hires, including Wayne Nutland from HSBC and Duncan Goodwin from Barings Asset Management.

In light of the “rapidly evolving risks and global impact” of the coronavirus crisis, the board said it was working to balance the “requirement of stakeholders” while “conserving and building” the group’s cash reserves.

The board therefore decided to reduce the required dividend payment due on April 30 and retain flexibility over the amount paid and the timing of dividend payments.

A number of major companies have axed their dividends for the rest of the year, causing billions of pounds worth of income drought for investors.

Despite the uncertainty caused by the pandemic, Premier Miton chief executive Mike O’Shea thought the crisis could create “attractive opportunities in the UK’s long-term savings and investment market” for firms which had a “strong sense of purpose”.

He said: “Well run, active fund management firms will be in a position to capitalise on this for the long-term benefit of investors. 

“My fellow directors and I continue to believe that the group, with its broad range of investment capabilities, collegiate investment culture and strength of operating base, remains well positioned for the long-term.”

imogen.tew@ft.com

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