Q4 AUM Update and Notice of Results

Premier Miton Group plc (AIM: PMI) today provides an update on its unaudited statement of Assets under Management ('AuM') for the fourth quarter of its current financial year (the 'Quarter' or 'Period').

• £9.8 billion closing AuM at 30 September 2023 (30 June 2023: £10.5 billion)
• £0.7 billion of net outflows for the Quarter and £1.1 billion of net outflows for the year to 30 September 2023
• Continued strong relative investment performance, with 73%2 of funds in the first or second quartile of their respective sectors since launch or fund manager tenure
• Company remains comfortable with market expectations for its financial performance for the year to 30 September 2023

Mike O'Shea, Chief Executive Officer, commented:

"The Group's AuM ended the Quarter at £9.8 billion, representing a 7% reduction on the opening position for the year. It has once again been a difficult period in many parts of the investment market, with investors shying away from equity funds, particularly in the UK equity and European equity sectors. We were not immune to this trend and despite ending the first half of the year level in terms of flows, we saw a slowing of sales and an acceleration of redemptions - much of it in UK and European equities - in the second half of the financial year. In particular, a single client undertook a reorganisation of their portfolios which resulted in almost £500 million of outflows in the year. However, it was pleasing to see continued flows into our fixed income and directly invested 'Diversified' multi-asset strategies.

"Investment performance has remained good across our multi-asset and fixed income strategies. It has been more difficult in the short term for many of our equity strategies given that we are active managers and do not run our funds close to index benchmarks. The inevitable consequence of running strategies that can deliver significant index outperformance is that there are likely to be periods of underperformance and our equity strategies have been through just such a period for much of the current calendar year. However, it is pleasing to see that 73% of our funds have delivered performance ahead of median since manager inception and, despite some short-term volatility, that figure is still 62% over the three-year period.

"Given the more difficult market backdrop, there has been an ongoing focus on ensuring costs within the business are fully aligned with revenue expectations. Good progress has been made in this regard with several restructuring changes completed during the year the benefit of which will come through partially in FY23 with full impact in FY24.

"We have a strong product set and have several new initiatives under consideration to help build momentum behind our organic growth strategy, as well as plans to further streamline our business where appropriate. Our well-regarded distribution and marketing teams remain committed to high levels of activity and are targeting those strategies that are currently in demand from investors, such as fixed income, money market and multi-asset. We are also laying the groundwork for when there is a renewed risk appetite in equities. We continue to maintain high levels of visibility in the market by participating in numerous fund manager roadshows and events servicing existing clients and showcasing our breadth and depth of investment talent to prospective clients, whilst increasing advertising and press activity.

"We also continue to assess a range of inorganic opportunities to add to our product capabilities and client reach. Naturally these are only pursued where there is a clear benefit to our business, and we are currently in the late stages of progressing one bolt on acquisition with a focus on the UK alternatives space."

Assets under Management:

1 Comprising of 41 open-ended funds, four investment trusts and two external segregated mandates.

2 The quartile performance rankings are based on Investment Association sector classifications where applicable. This covered a total of 37 open-ended funds since manager inception. Data is sourced from FE Analytics FinXL using the main representative post-RDR share class, based on a total return, UK Sterling basis. All data is as at 30 September 2023 and the performance period relates to when the fund launched or the assumed tenure of the fund manager(s).

3 AuM and net flows are presented after the removal of AuM invested in other funds managed by the Group. At the Period end these totalled £283 million.

Notice of results