Premier Hit By Outflows Ahead Of Merger With Miton

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Premier swung to net outflows in a “difficult year” as it finalised its merger with Miton, with Brexit uncertainty weighing on the asset manager. 

In its last results before the merger takes effect, Premier revealed that its assets under management (AUM) slipped from £6.9bn to £6.6bn for the year ending 30 September.

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“This has been a more difficult year for the business and indeed for the UK funds industry generally, with investment decisions largely on hold while investors wait for clarity over Brexit,” said chief executive Mike O’Shea.

Premier was hit by net outflows of £233m during the period, compared to inflows of £734m a year earlier.  

Profit before tax fell 13.8 per cent to £13.7m, down from £15.9m in 2018, while basic earnings per share fell 10.5 per cent to 10.82p.

“As confidence returns to the UK market, we believe that our focus on delivering good client outcomes and our relevant product range mean we are well placed for future growth,” said O’Shea. 

Premier’s all-share merger with Miton, which was announced in September, took effect on 14 November.

The newly-formed group, which will be known as Premier Miton, has £11.1bn AUM. 

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O’Shea said  the company was “excited about the opportunities for the new enlarged Premier Miton Group”.

“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 shares closed 4.75 per cent down at 160.5p.