Premier Miton shares jump as AuM hits £10.6bn in Q3, looks forward to rate cuts

Premier Miton Group shares jumped on Friday after the fund manager announced assets under management rose in Q3 as the group enjoyed inflows during the period.

The company’s AuM reached £10.6 billion as of 30 June 2024, up from £9.8 billion at the end of September 2023.

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Premier Miton shares were 6% higher at the time of writing.

The group experienced net inflows into its equity funds during June 2024, signalling a potential turnaround in investor sentiment towards this asset class. Fixed income funds also saw net inflows throughout the quarter, reflecting ongoing investor interest in this sector.

However, these positive trends were partially offset by net outflows from multi-asset funds and segregated mandates.

“The Group’s AuM ended the Quarter at £10.6 billion, an increase of 8% on the opening position for the financial year,” said Mike O’Shea, Chief Executive Officer.

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“We have seen an improvement in the outlook for fund sales during the Quarter. It is pleasing to note that we have seen continued demand for our fixed income funds as well as a more recent improvement in the flow position for our international equity funds. Demand for UK equities remains subdued despite the strong relative performance of the asset class. In total, we experienced net positive flows across our fixed income and equity funds during the Quarter.

“We have continued to experience a weak environment for multi-asset fund sales, particularly in our multi-manager range, despite our strong long-term performance record in this area. I am, however, pleased to announce that our managed portfolio service, managed by our highly successful multi-manager team, is now live for our first intermediary clients and will be more widely available as we move through this Autumn. We continue to see good interest from advisers for a cost-effective managed portfolio service run by one of the most experienced multi-manager teams in the market. 

“During the Quarter we were pleased to have successfully completed the integration of the Tellworth business onto the Premier Miton platform. This will allow us to right size the cost base of the business and we are confident that with improved access to our distribution and marketing capabilities the Tellworth business will flourish over the coming months and years.    

“As I have mentioned previously, falling interest rates are likely to be the catalyst for an improvement in fund sales more generally and we expect that rates will start to decline as we move through the latter half of 2024 and into 2025. 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 as this occurs.”   

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