Premier Miton reports full-year growth in AuM, but weak Q4

Premier Miton Group reported a 9% increase in assets under management for the financial year ended 30 September on Friday, reaching £10.7bn, up from £9.8bn a year earlier.

Despite the annual growth, the AIM-traded fund management group said it experienced net outflows of £133m during the fourth quarter.

It noted that investor interest was gradually returning, with more positive market signs emerging.

“It was pleasing to see that net flows into our funds and segregated mandates were positive during June, July and August,” said chief executive officer Mike O'Shea.

“Significant uncertainty ahead of the budget in the UK later this month appears to have dented investor sentiment more recently.

“As a result, the improving environment for sales that we saw over the summer has reversed.”

Net flows for September were negative, with O'Shea reporting a “meaningful redemption” from one of the UK-focussed investment trusts the company manages, bringing the total outflow for the quarter to £133m.

“This is disappointing after the stronger inflows seen over the summer.

“It is to be hoped that once the full impact of the budget, particularly on capital gains and pensions, is known, then investor confidence will return.

“Encouragingly, though, we continued to see positive flow into the Tellworth funds following their successful integration into the Premier Miton business.”

Mike O'Shea said investment performance also continued to be good in many of the firm’s key areas.

“Our UK equity teams have delivered strong returns over the last year as have our multi-asset teams.

“It has also been pleasing to see improving short term numbers for some of our international equity strategies as equity markets have broadened out in recent months.

“Both our fixed income and absolute return teams have continued to build on their impressive longer-term numbers - all of which stands us in good stead for when the flow environment improves.”

At 1108 BST, shares in Premier Miton Group were up 2.57% at 60p.

Reporting by Josh White for Sharecast.com.