Asset Manager Premier Miton Faces Potential Challenges from Import Taxes
Premier Miton, a fund manager listed on the London Stock Exchange, reported a decline in assets under management during the first half of the financial year due to investor caution, particularly towards UK and European equity strategies. The firm's assets dropped from £10.7bn in September 2024 to £10.2bn as of the latest reporting period.
Net outflows increased significantly, jumping to £254m compared to £46m during the same period last year. Pre-tax profit plummeted £300m to £5.4m. The company attributed these poor results to ongoing challenges in investment markets and the UK savings industry.
Premier Miton's European business experienced one of the worst performances, contributing £175m of outflows during the second quarter. Despite this poor performance, the firm expressed continued conviction in its European operations and its long-term growth strategy for the region.
Robert Colthorpe, the company's chair, noted recent market volatility, which he connected to fears for the global economy following the introduction of US tariffs and the early stages of a major geopolitical and economic reset with potentially far-reaching consequences.
The tariff-related trade tensions have reportedly hit many asset managers hard. In a volatile quarter, Premier Miton recorded a loss of £250m, while Liontrust suffered £702m in losses, and Polar Capital reported a staggering £2.3bn loss.
Despite these challenges, Premier Miton expects to achieve £3m in annual cost efficiencies, aiming to implement these savings by September 2025. According to Mike O'Shea, the company's chief executive, the firm remains optimistic about its future, citing a strong new business pipeline across various investment strategies.
In a complex landscape shaped by U.S.-EU trade standoffs and potential stagflation risks, asset managers like Premier Miton may need to stay agile, focusing on sectors less affected by tariffs and maintaining a diversified portfolio to manage risks effectively. Prioritizing resilient sectors such as energy and AI-driven tech is deemed crucial in an uncertain trade environment.
- Ongoing challenges in investment markets and the UK savings industry have led to significant net outflows for Premier Miton, with a £254m decrease compared to the same period last year.
- Premier Miton's European business faced one of the worst performances, contributing £175m of outflows during the second quarter, while its personal-finance and business strategies also saw declines.
- To counteract these losses, Premier Miton aims to achieve £3m in annual cost efficiencies by September 2025, focusing on sectors less affected by tariffs and maintaining a diversified portfolio, with a focus on energy and AI-driven tech as resilient sectors in an uncertain trade environment.
- Asset managers like Premier Miton are expected to stay agile amid complex landscapes, shaped by U.S.-EU trade standoffs and potential stagflation risks, necessitating a careful approach to finance, markets, economy, technology, and business strategies.
