Premier Miton AUM falls flat as open-ended funds suffer £87m redemptions

Shares in the fund group sagged 4% following unaudited Q1 figures

Premier redemptions slow despite 'difficult' market
Mike O’Shea

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Premier Miton has closed out the first quarter of its financial year with flat assets under management after suffering £87m of redemptions from its open-ended funds amid a “challenging period for UK fund flows”.

In an unaudited trading update, the fund manager revealed its equity funds had leaked £70m over the three months to 31 December and that clients had pulled £79m from its multi-asset funds. This offset £62m of net inflows into its fixed income funds.

Including the loss of the £100m closed-ended Acorn Income mandate, net outflows for the period reached £188m.

Total assets in the three months to 31 December remained unchanged from the previous quarter at £13.9bn, however, as market movements of £194m offset redemptions.

The preliminary Q1 figures did not go down well with shareholders, who sent shares in the asset manager toppling by 4% by midday.

Chief executive Mike O’Shea (pictured) said the result was “disappointing” coming off the back of four consecutive quarters of net inflows totalling £830m but said the redemptions reflect “a challenging period for UK fund flows in general, and for UK equities in particular”.

“Importantly, our investment performance remains strong, with 80% of funds in the first or second quartile of their respective sectors since launch or fund manager tenure, with both our more established and newer funds performing well,” he said.

See also: Premier Miton rolls out first sustainable multi asset fund

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