- Asset manager Premier Miton has reported net outflows hit £167m in the quarter ended 31 March 2020, compared to net inflows of £3m in the same period a year earlier.

In its second quarter assets under management (AUM) update, the group announced closing AUM of £9.1bn at the end of March 2020, up from £6.8bn a year ago.

The group confirmed that its post-merger integration was 'progessing in line with management expectations', with the rationalisation of central and head office functions completed, while the 'elimination of duplicated staff roles' had also been completed.

While the group said the full implications of Covid-19 on its performance in the current financial year were 'difficult to determine', it has taken some steps to 'weather the storm', with the senior management team having elected to take a reduction in salary for a period of six months.

It also provided a dividend update in which it said the 'rapidly evolving risks and global impact from Covid-19 and the uncertainties as to the duration and impact of the pandemic' meant the board was working to balance stakeholder requirements while conserving and building its cash reserves.

It will now adopt a dividend policy that targets an ordinary dividend pay-out of approximately 50% to 65% of profit after tax.

The group said it has approved a dividend payment of 0.75 pence per share for the three-month period ended 31 March 2020, and that future dividends will be distributed twice-yearly, having previously paid quarterly interim dividends.

Chief executive Mike O'Shea said while the financial quarter initially saw a solid overall performance for the group, in the past few weeks the market turbulence from the Covid-19 pandemic has 'significantly affected' the business.

He added: 'It is clear that the current market conditions are particularly challenging for any business in the asset management sector. I am proud of how well our people have responded.

'Our fund management teams, as we would expect, have all been actively monitoring markets and looking to take advantage of investment opportunities that may emerge throughout the crisis.'

At 10:05am: [LON:PMI] Premier Miton Group PLC share price was +2.5p at 94p

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