Premier Miton records quarterly net outflows of £449m

Investment management firm Premier Miton reported closing assets under management of £10.5bn for the June quarter on Friday, representing a decrease from the £11bn it reported on 31 March.

The AIM-traded company said the decline in assets under management was down to net outflows of £449m during the three months ended 30 June.

Despite the decrease, Premier Miton said it was still demonstrating strong relative investment performance.

About 81% of the funds managed by the company since their launch or under the tenure of the respective fund managers had been ranked in the first or second quartile of their respective sector, the board noted.

While the decrease in assets under management and net outflows indicated a challenging period for Premier Miton, the firm said it remained focused on providing investment strategies to deliver value and generate favourable returns for clients.

“We saw outflows from across our fund range as investors retrenched against a backdrop of higher inflation, higher interest rates and ongoing market uncertainty,” said chief executive officer Mike O'Shea.

“These outflows were principally driven by asset allocation decisions in the wider market, with investors choosing to reduce exposure to equities.

“Fixed income was a positive area -we saw inflows of £175m, although these were to some extent offset by outflows of £70m from our money market fund.”

Year-to-date, Mike O'Shea said the company had seen over £500m of net inflow into fixed income.

“We continue to focus heavily on building our profile with advisers and wealth managers through our marketing and distribution activity.

“We believe we have a suite of investment products that will be attractive to investors and their advisers once they return to having a more positive investment outlook.”

At 0813 BST, shares in Premier Miton Group were down 4.2% at 75.2p.

Reporting by Josh White for Sharecast.com.