Wednesday 4 September 2019 11:45 am

Premier Asset Management merges with Miton to form £11.5bn asset manager

Premier Asset Management has agreed a merger with Miton, creating a group with £11.5bn assets under management.

An announcement by the two companies said the new business, which will be known as Premier Miton Group, would be “well positioned for future growth”.

The new group would have been the fifth largest contributor to net UK retail sales during 2018, the companies said.

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Premier had reported an £100m drop in assets under management, which fell to £6.7bn for the year ending 30 June. Miton had reported increased assets under management of £4.7bn for the sixth months to the end of June.

Shareholders of the AIM-listed Premier will own 66 per cent of the new firm, with Miton shareholders owning the remainder. The new group will be AIM-listed.

According to Premier and Miton, the merger will help make approximately £7m of savings per year in the running of operating platforms three years after its completion.

Premier chief executive Mike O’Shea will run the new group, while Miton’s head, David Barron, becomes a non-executive director.

O’Shea said the merger would “bring together two complementary and culturally-aligned businesses”.

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“The combined group will create a company with greater scale and financial strength to invest for future growth, with broader and deeper investment capabilities, enhanced distribution and a more efficient operating platform,” he added.

“Miton’s expertise in actively managed, differentiated high conviction funds is a very strong complement to Premier’s leading position in multi-asset strategies,” said Barron. “With limited overlap between the two businesses, this merger will result in the ability to offer our clients a broader and more compelling range of investment solutions.”