TIDMPMI
RNS Number : 2864J
Premier Miton Group PLC
09 April 2020
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 GBP9.1 billion at 31 March 2020 (31 March 2019: GBP6.8 billion)
-- Net outflows of GBP167 million in the Period (3 months to 31
March 2019: GBP3 million net inflows)
-- GBP29.3 million of cash balances as at 31 March 2020 (31 March 2019: GBP15.3 million)
Assets under Management
Opening Quarter Quarter Market / Closing
AuM 1 2 Year to investment AuM
1 Oct Merger net flows net flows date net performance 31 Mar
2019 (1) (2) (2) flows (2) 2020
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Equity funds 1,312 3,406 41 75 116 (784) 4,050
Multi-asset
funds 4,423 795 (118) (207) (325) (801) 4,092
Fixed income
funds (3) 576 - (145) (35) (180) (13) 383
Investment trusts 150 500 - - - (119) 531
Segregated mandates 95 - - - - (6) 89
Total 6,556 4,701 (222) (167) (389) (1,723) 9,145
(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 GBP300 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 2020 (4)
(4) Per formance 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."
S
For further information, please contact:
Premier Miton Group plc
Mike O'Shea, Chief Executive Officer 01483 306 090
Numis Securities Limited (NOMAD and Broker)
Kevin Cruickshank / Charles Farquhar / Huw
Jeremy 020 7260 1000
Liberum Capital Limited (Joint Broker)
Richard Crawley / Jamie Richards 020 3100 2000
020 3047 2544
Smithfield Consultants (Financial PR) /
John Kiely / Andrew Wilde 07785 275665
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.
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END
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