Premier and Miton join forces in latest fund manager merger
If the merger goes ahead, the combined asset manager will be renamed Premier Miton Group.
5th September 2019 16:37
by Kyle Caldwell from interactive investor
The combined asset manager will be renamed Premier Miton Group and will continue to be listed on AIM.Â
Fund management boutiques Premier (LSE:PAM) and Miton (LSE:MGR) have reached an agreement to join forces, subject to shareholder, regulatory and court approval.
If given the green light the merger will result in a combined asset management business of £11.5 billion. The firm will be renamed Premier Miton Group and will continue to be listed on the AIM market. Following the merger, which is slated to complete in the fourth quarter, Miton's shareholders will own approximately a third of the combined business.
Both Premier and Miton describe the proposed merger as "complementary", due to the businesses having minimal overlap in their fund ranges.
In an announcement to shareholders, the firms said that by joining forces and having a wider product range and greater scale, the combined business will be "well positioned for future growth".
The proposed merger comes on hot on the heels of Liontrust (LSE:LIO), which in late July announced its plans to buy Neptune. There have been other notable fund management mergers over the past couple of years, including Standard Life Aberdeen.
Mike O'Shea, chief executive officer of Premier, who will become chief executive officer of the combined group, said: "This merger will bring together two complementary and culturally aligned businesses. Both are focused on delivering added value for clients through actively managed, strongly performing and relevant investment products.
"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. Ultimately, this should position us well for continued growth and deliver value for clients, shareholders and employees."
Premier's flagship offering is its multi-asset fund range, led by David Hambidge, with Premier Multi-Asset Growth and Income, a Money Observer Rated Fund since 2005.
Miton is well-known for its smaller company investing strategies, led by Gervais Williams. The firm has other "strengths"Â in its US and European funds, notes Darius McDermott, managing director of Chelsea Financial Services. Â
In total there are five Money Observer Rated funds managed by Miton. They are: Miton US Opportunities, Miton UK Value Opportunities, Miton Global Opportunities (LSE:MIGO), Miton UK Microcap (LSE:MINI) and Miton Cautious Monthly Income. The latter fund is a multi-asset fund, headed up by David Jane. There are three other multi-asset funds managed by Miton, so there is some potential crossover with Premier's multi-asset funds in that respect. Â
On the whole the proposed merger should be welcomed by investors, says McDermott, who points out both companies will be hoping for some scale advantages and cost savings.Â
He adds: "This merger seems to be a positive move as Premier Asset Management and Miton Group have complementary fund ranges. Premier has an established position in the adviser community, and has a particularly strong multi-asset offering, whereas Miton's strengths lie in its single equity strategies – most notably Europe, the US and small caps.
"Both companies are in a growth phase and the combined entity should be better placed to continue to pursue a strong growth strategy going forward. I believe this will be a positive move for the companies and their investors."
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
This article was originally published in our sister magazine Money Observer, which ceased publication in August 2020.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
These articles are provided for information purposes only. Â Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. Â The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.