Premier Miton Group reported a 27.8% fall in adjusted profit before tax of £5.7m from $7.9m in HY 2023 as assets under management grew 9% to £10.7bn since the start of this year.
In its half year results for the six months ended 31 March 2024, the AIM quoted fund management group said it had added £560m AUM through the acquisition of Tellworth Investments LLP and the appointment as investment manager to GVQ Investment Funds (Dublin) plc
Net outflows in the period were £46m (2023 HY: £32m outflows) while 68% of funds were above median investment performance since launch or tenure (2023 HY: 76%).
An interim dividend of 3.0 pence per share reflected "robust cash position and confidence in the long-term outlook (2023
interim: 3.0 pence per share)", the statement said.
Mike O'Shea (pictured), chief executive officer of Premier Miton Group, said: "The Group's AuM ended the Period at £10.7 billion, an increase of 9% on the opening position for the financial year. It is pleasing to have seen this improvement continue during the current quarter both in terms of assets under management but also, more recently, in terms of an improving flow environment.
"Additionally, we are encouraged that shorter term investment performance is on an improving trend as market breadth improves and mid and small cap stocks recover.
"As previously announced, we successfully completed both the acquisition of Tellworth Investments LLP and the take on of the investment management activities of GVQ Investment Funds (Dublin) plc. Both are complementary to our existing business and align with our strategic objective to diversify our product range and enhance our presence in both institutional and international markets.
He further said: "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.
"Demand for savings products will remain high as savers and investors need to do more to secure their individual long term financial futures. Active managers such as Premier Miton have a role to play in managing these savings. To do so, our funds must demonstrate that they can add value, over and above the returns from the major indices, by having robust investment processes; well-researched portfolios, often with high active shares and high tracking errors; and by delivering out-performance.
"That is why it is so important that we continue to demonstrate significant added value over the long term. At Premier Miton we have the expertise, experience, and range of products to do just that."
