Mike O'Shea

The AIM-listed group said £102m of the quarterly decline came from investment and market performance, from AuM of £8.6bn at 1 July 2026. Over the full year, net outflows were £2.6bn, partly offset by £352m of market and investment gains.

The group said it had identified £1.5m of annualised savings, which will be delivered over the next 12 months at a one-off cost of £300m, to ensure its “operating model is appropriate for the current size of the business while retaining the ability to scale efficiently over time”.

The company’s cash balance stood at £26m as of 30 September 2026. Premier Miton highlighted that absolute return saw the heaviest outflows in the last quarter at £244m, followed by international equity at £146m and UK equity at £66m. It added that fixed income recorded net inflows of £128m.

In July and August, outflows were elevated before falling “significantly” in September as redemptions reduced across several strategies. Fixed income and macro thematic multi-asset funds continued to see demand. Redemption rates in its US and European equity strategies fell by 80% and 40% respectively in the last quarter of the year compared with earlier quarters.

Investment performance also improved, with 74% of AuM performing above median year to date, 71% over one year and 68% over three years. Twenty-one funds ranked in the first or second quartile of their sectors year to date, including 11 in the first quartile.

Mike O’Shea, chief executive, said: “While it remains too early to conclude that these trends will be sustained, improving investment performance, lower redemption levels and continued inflows into several of our strategies provide some evidence that the significant headwinds experienced over the past year are beginning to ease.”

“Our UK equity strategies have performed strongly in the short term, improving their medium-term performance record. We have a strong team of experienced fund managers and believe we are well positioned both to retain existing assets and to benefit when investor demand for UK equities improves. 

“There are, however, areas where further progress is required. We continue to focus on improving shorter-term performance across our diversified multi-asset strategies. Absolute return has also experienced a challenging period for performance, reflecting a difficult backdrop for long-short strategies. More recent investment performance has been stable, and we retain confidence in the team and its ability to deliver the investment outcomes required to support greater stability in assets.

It added: “Taken together these developments provide a more encouraging backdrop as we enter the new financial year. Our distribution team continues to perform well with gross sales of over £2.7bn for the seventh consecutive year. This demonstrates continued demand across our product range, although elevated redemptions have more than offset these sales during the year. If the recent improvement in investment performance is sustained and redemption levels continue to moderate, we believe there is a clear opportunity to stabilise net flows and, over time, return the business to growth.

“There is clearly more work to do, and sustained investment performance will be required to achieve a more stable flow environment. However, we enter the new financial year with a leaner and more focussed business, improving investment performance in key capabilities and identifiable areas for organic growth, both in our home market and internationally.

“At the same time, we continue to evaluate strategic opportunities that have the potential to enhance shareholder value. We have a strong investment culture and a well-respected distribution capability that can make us an attractive home for talented investment teams. Our strong balance sheet and position as a listed business provide us with strategic and financial flexibility to pursue inorganic opportunities that can add scale, enhance our investment capabilities and broaden our access to attractive client segments.

“Our priorities remain clear: delivering strong investment outcomes for our clients, stabilising AuM and maintaining an efficient and effective operating platform. We believe that continued progress in these areas will improve profitability and deliver long-term value for shareholders.” 

Premier Miton will publish its results for the year to 30 September 2026 on 3 December.