Premier Miton has reported a dent in profits and net outflows in its first annual results as a combined entity.
On Thursday the group published full-year results following the merger of Premier and Miton in November 2019, which it said cost the firm £4.5m.
As such, profit before tax for the year was £9.6m, down from £13.7m the year before.
The firm also reported net outflows of £619m, predominantly from its multi-manager funds due to their weaker short-term performance figures. This was because of a higher weighting towards value and domestically-focused companies, it said.
However, total assets under management ended the year at £10.6bn, up 16% since the end of March when assets were £9.1bn, and up from £6.6bn the previous year. As a result, net management fees increased 37.6% to £66.6m.
Premier Miton chief executive Mike O’Shea (pictured) said it was disappointing to report a net outflow, but the firm continues to see strong demand for non-UK focused funds, with the LF Miton European Opportunities and LF Miton US Opportunities funds seeing net inflows of £712m and £78m, respectively, since the merger completed.
The new fixed income team, headed by Lloyd Harris, which joined from Merian Global Investors in August, has also achieved net inflows of £136m since its arrival, the firm said.
See also: Premier Miton unveils two funds for Lloyd Harris’s team
The results also revealed all investment teams moved to a single entity from 24 April 2020. The firm is due to complete the transition to one authorised corporate director (ACD) at the end of November when all funds across the range will come under the same name.
Last week it was reported that ACD Link Fund Solutions is set to lose £4.8bn worth of business as Premier Miton brings all its ACD activities in-house a year after its merger.
O’Shea said it had been a “landmark year” for Premier Miton.
“Although we had net outflows during the year, we are encouraged by our continued positive fund flow momentum into our equity and fixed income funds, the strong performance across our broad range of multi-asset funds, and the potential of our new investment capabilities.
“Our financial year commenced following the announcement of the merger between Premier Asset Management Group plc and Miton Group plc and I am pleased to report that the integration process has gone to plan in terms of people integration and operational and financial synergies.
“We have also faced the significant market disruption arising from the Covid-19 pandemic and I am pleased with the overall strong performance delivered by many of our investment strategies via genuine active management.”
