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Premier Asset Management Sees Drop In Assets On Uncertain Market

Thu, 10th Oct 2019 10:35

(Alliance News) - Premier Asset Management Group PLC said Thursday its net assets fell year-on-year in financial 2019 due to a background of "economic and political uncertainty".

At September 30, the retail asset manager's assets under management stood at GBP6.56 billion compared to GBP6.87 billion at the same point a year ago, a 4.5% decline.

"Against a background of economic and political uncertainty, net outflows were GBP233 million for the year," said Chief Executive Mike O'Shea.

He continued: "Reflecting these current uncertainties, we experienced net outflows in the last two quarters of the year having had 24 successive quarters of positive net inflows. For this reason, we continue to believe that our focus on providing relevant investment products to clients, backed by active investment management and good long term investment outcomes, positions us well for future growth."

Premier Asset Management recorded GBP54.8 million in fund outflows during the third quarter to June 30 and GBP245.6 million outflows in the fourth quarter to September 30.

Premier Asset Management recorded GBP1.59 billion in sales during the year, but suffered GBP1.82 billion in redemptions.

Over the year, investment performance was broadly stable, detracting GBP3.4 million from total assets. In the first quarter however, investment performance shed GBP486.4 million from assets but performance in the remaining three quarters offset this.

Premier Asset Management said it has adopted a quarterly dividend policy, where it expects to pay three smaller interim dividends - equalling about half of total dividend - followed by a larger final interim dividend. The asset manager has already paid three 1.7 pence interim dividends during the year.

O'Shea added: "We are pleased that the shareholders of Premier and Miton Group PLC have approved the all-share merger between the two companies and we are excited about the opportunities for the new enlarged Premier Miton Group.

"The merger will create a diversified active UK asset manager with a strong investment capability that benefits from a more efficient platform and greater financial strength, with reported pro-forma combined assets under management of GBP11.2 billion. The merger remains subject to regulatory approval and the effective date of the merger is expected to be November 14."

The company expects to release its final results on November 28.

Shares in Premier Asset Management were 0.1% higher in London on Thursday at 176.70 pence each.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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