Premier Miton reports rise in assets under management

12th Apr 2024 14:20

(Sharecast News) - Premier Miton Group said in an update on Friday that as of 31 March, its assets under management totalled £10.7bn, making for an increase from the £9.8bn it recorded on 30 September.

The AIM-traded firm said that during the March quarter, it saw a successful addition of £560m in assets under management through the acquisition of Tellworth Investments, and its appointment as investment manager to GVQ Investment Funds Dublin.

Despite that growth, the company experienced £268m in net outflows for the quarter, although it maintained a strong relative investment performance, with 68% of funds in the first or second quartile of their respective sectors since launch or fund manager tenure.

Additionally, the company reported an encouraging shorter-term performance, with 69% of assets under management in the first or second quartile over one year.

"Long-term investment performance remains relatively strong, with 68% of funds in the first or second quartile of their respective sectors since launch or fund manager tenure," said chief executive officer Mike O'Shea.

"It has also been encouraging to see shorter term performance on an improving trend as market breadth improves and mid and small cap stocks recover.

"As previously announced, during the quarter we successfully completed both the acquisition of Tellworth Investments and the take on of the investment management activities of GVQ Investment Funds Dublin."

O'Shea said both were complementary to the firm's existing business, and aligned with its strategic objective to diversify its product range and enhance its presence in both institutional and international markets.

"The backdrop for active fund sales in the UK retail market has been challenging over the period, as it has been since interest rates began to rise at the end of 2021.

"We are now at a point where interest rates are likely to trend lower as we move through 2024 and we believe this will support an improving environment for fund flows and asset values that should particularly benefit Premier Miton.

"We remain confident that our clear proposition in active management and our belief in the potential of mid-sized and smaller companies to deliver significant long-term outperformance over index strategies, alongside our diversified product range and powerful distribution capabilities will allow the group to perform well for our clients and our shareholders moving forward."

At 1355 BST, shares in Premier Miton Group were up 8.14% at 63.8p.

Reporting by Josh White for Sharecast.com.