Premier Miton Regulatory News (PMI)

9 April 2020

Premier Miton Group plc

('Premier Miton', 'Group' or the 'Company')

Q2 AuM update

Premier Miton Group plc (AIM: PMI) today announces an update on its unaudited statement of Assets under Management ('AuM') for the quarter ended 31 March 2020 (the 'Period').

Summary

· Post-merger integration progressing in-line with management expectations

· Closing AuM of £9.1 billion at 31 March 2020 (31 March 2019: £6.8 billion)

· Net outflows of £167 million in the Period (3 months to 31 March 2019: £3 million net inflows)

· £29.3 million of cash balances as at 31 March 2020 (31 March 2019: £15.3 million)

Assets under Management

1 Merger of Premier Asset Management Group plc and Miton Group plc on 14 November 2019

2 Includes the former Miton Group plc fund range with effect from close of business on 14 November 2019

3 Includes the Premier Defensive Growth Fund, previously disclosed within Equity funds

Fund commentary

· At 31 March 2020, the Group managed 46 products, comprising of 39 OEIC sub-funds, two unit trusts and five investment trusts. These products are managed by 44 investment professionals split across 16 teams

· Even balance of strategies by AuM across the product range; 54% being active, high conviction single strategy funds and 46% outcome based multi-asset funds

· Eight funds each have AuM at the Period end in excess of £300 million

· Continued expansion of the fund range with the launch of Premier Managed Index Balanced Fund in December 2019. The fund is managed by Wayne Nutland who joined from HSBC Global Asset Management in October 2019

· Duncan Goodwin joined from Barings Asset Management in January 2020 to manage the Premier Global Alpha Growth Fund and co-manage the Premier Global Optimum Income Fund using a thematic global equity strategy aimed at identifying sustainable high growth companies

· 23 out of 38 funds are first or second quartile performers since manager tenure to 31 March 20204

4 Performance figures represent 87% of Premier Miton's total AUM as at 31 March 2020 and exclude absolute return funds, pan European property funds, investment trusts and segregated mandates. Figures are shown relative to respective Investment Association sectors. Source: FE Analytics, data to 31 March 2020. Net income reinvested. Data shown net of all fund charges. Based on main representative post RDR share class. Where the main representative share class was not available for the full time period, the pre RDR bundled or equivalent retail share class has been used for the period the main representative share class was not available.

Merger update

· Rationalisation of central and head office functions has been completed

· Additional capacity for staff has been facilitated at the head office in London, rationalisation of existing office space across the Group is underway

· Harmonisation of operating models is on track for completion during 2020

· Elimination of duplicated staff roles completed with clear reporting lines implemented

COVID-19

While the full implications of COVID-19 on the financial performance for the current financial year are difficult to determine at this stage, the Board has taken decisive steps to protect the Group to ensure that it can weather the storm and prosper when market conditions improve. The Board remains confident in the future prospects of the Group.

Our primary aims are to protect the health, safety and welfare of all our staff and to provide business continuity for our clients. From 16 March 2020, all of our employees transitioned to remote working and we are pleased to report that our systems are operating as planned. We continue to provide a full investment management service to our clients.

We are actively managing the financial position of the Group to reflect these market conditions and seeking to ensure that cashflow and liquidity are sufficient to protect the interests of all our stakeholders. There are a number of measures available to the Board to reduce the cost base of the Group and to align expenditure with a changed and volatile revenue base. We have already implemented cuts to certain discretionary expenditure across the business and have agreed a measured approach to making further changes if needed. In addition, the senior management team have elected to take a reduction in salary for a period of six months.

Dividend update

The Board remains committed to a dividend policy that prudently allocates earned profits between returns to shareholders, supporting the capital base of the Company and further investing in the growth potential of the Group. The Board aims to ensure the Company has a strong balance sheet, with sufficient capital resources and cash balances in order to achieve its long-term objectives.

Due to the rapidly evolving risks and global impact from COVID-19 and the uncertainties as to the duration and impact of the pandemic, the Board is working to balance the requirements of all stakeholders of the business whilst conserving and building the Group's cash reserves in the current crisis.

With this in mind and noting that the Group continues to be cash generative, the Board will now adopt a dividend policy that targets an ordinary dividend pay-out of approximately 50 to 65% of profit after tax, adjusted for exceptional costs, share-based payments and amortisation. However, the Board recognises that it needs to retain flexibility on the quantum and timing of dividends during these exceptional times.

The Board has therefore taken the prudent decision to reduce the quantum of the second interim dividend and has approved the payment of 0.75 pence per share for the three-month period ended 31 March 2020. The ex-dividend date will be 30 April 2020 and the associated record date will be 1 May 2020, the payment date will be 29 May 2020.

For future dividends, the Group will distribute on a twice-yearly basis, moving away from the payment of quarterly interim dividends. Dividends going forward will be aligned with the Group's reporting calendar:

· First interim: announced with the half year results and paid in June

· Final: announced with the full year results and paid following the AGM

Mike O'Shea, Chief Executive Officer, commented:

"This financial quarter initially saw a solid overall performance for the Group and good progress on our integration plans. However, in the past few weeks the market turbulence from the COVID-19 pandemic has significantly affected our business.

It is clear that the current market conditions are particularly challenging for any business in the asset management sector. I am proud of how well our people have responded. Our fund management teams, as we would expect, have all been actively monitoring markets and looking to take advantage of investment opportunities that may emerge throughout the crisis. Naturally, we are continuing to keep our clients regularly updated on fast-changing investment conditions and how we are actively managing their money in this volatile environment. Our risk and compliance teams continue to monitor and report on performance, liquidity and cash levels across our fund range whilst working remotely.

It is likely that the current uncertainty will create attractive opportunities in the UK's long-term savings and investment market for firms that have a strong sense of purpose and a full commitment to their clients and their people. Well run, active fund management firms will be in a position to capitalise on this for the long-term benefit of investors. My fellow directors and I continue to believe that the Group, with its broad range of investment capabilities, collegiate investment culture and strength of operating base, remains well positioned for the long-term.

I am pleased to report that there has been good progress made on the post-merger integration. It is testament to the dedication of our teams across our new, enlarged business that we continue to deliver our goal of business continuity, despite the challenging circumstances we are currently facing.

I would like to close by thanking every member of the Premier Miton team for their hard work and energy in adapting to the COVID-19 threat and in ensuring that we continue to serve our investors whilst doing our best to stay safe, help our society and do what we can to minimise and reduce the damage of the virus."

ENDS

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Notes to editors:

Premier Miton Investors is focused on delivering good investment outcomes for investors through relevant products and active management across its range of investment strategies, which include multi-asset, equity, absolute return and fixed income.