Premier hit by redemptions as Miton merger completes

CEO Mike O’Shea says it has been a difficult year for the business



Premier’s assets have taken a dive after a “more difficult year” as it finalises its merger with fellow fund group Miton.

In its last set of results as a standalone business Premier revealed it had been hit by £233m worth of redemptions during the year ended 30 September 2019, which took assets down from £6.9bn to £6.6bn. This is a stark contrast from last year where it saw net inflows of £734m.

Profit before tax was also squeezed, falling 14% from £15.9m to £13.7m, while net revenues dipped slightly from £48.8m to £48.6m.

Premier completed its all-share merger with Miton on 14 November. The newly formed business Premier Miton has a combined AUM of £11.1bn.

Premier CEO Mike O’Shea (pictured) said it had been “a more difficult year for the business” and “for the UK funds industry generally” as investors shunned UK equity markets while waiting for clarity around Brexit.

Miton also disappointed with its H1 fund flows ahead of the merger, with clients pulling £82m, mainly from its UK equity funds.

But O’Shea said he was excited for the future of Premier Miton which he touted as a “diversified active UK asset manager with a strong investment capability that benefits from a more efficient platform and greater financial strength”.

“Premier Miton’s blend of outcome-based multi-asset strategies and genuinely active single strategies, run by highly regarded teams, and supported by enhanced distribution is a unique proposition, which we believe will be highly attractive for advisers and wealth managers.”

Premier Miton will be listed on the Aim stock exchange. Premier’s shares sank 5% to 160p on Thursday morning.


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