Premier Asset Management is set to merge with Miton Group in an all-share deal.
The new combined firm, which will manage £11.5 billion of assets, will offer investors a wider product range, greater scale and diversified revenues. It will be headed up by Premier chief executive Mike O’Shea.
Ryan Hughes, head of active portfolios at AJ Bell, said the deal highlighted the “unabated pace of consolidation in the UK asset management space” as more active managers look to scale up to take on the challenge of passive investing and narrower distribution.
He said: “The two businesses look a very good fit with complementary fund ranges that combine Premier’s key competence in multi asset investing with Miton’s focus on single strategy funds. There is little overlap in the fund ranges although some prospect of consolidation in UK equity income, multi asset and infrastructure does exist and therefore we may see some fund mergers over the next 12 months.”
Darius McDermott, managing director at Chelsea Financial Services, commented that it was “a sign of the times” and reflected “the increasing challenges that asset management businesses – especially boutiques – face.
“Mifid implementation, competition and markets implementations all take time, resources and money. So both companies will be hoping for some scale advantages and cost savings.
“But 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.”
