Premier Miton Group PLC on Friday said falling interest rates are likely to be the catalyst for an improvement in fund sales as it announced an increase in assets under managements.

The Guildford, Surrey-based asset management firm said assets under management as at June 30 rose 8.2% to £10.6 billion from £9.8 billion at September 30, 2023.

Chief Executive Officer Mike O’Shea said: ‘We have seen an improvement in the outlook for fund sales during the quarter. It is pleasing to note that we have seen continued demand for our fixed income funds as well as a more recent improvement in the flow position for our international equity funds. Demand for UK equities remains subdued despite the strong relative performance of the asset class. In total, we experienced net positive flows across our fixed income and equity funds during the quarter.’

Premier Miton noted a weakness in multi-asset fund sales, in particular in the multi-manager range.

Noting that falling interest rates are likely to be the catalyst for an improvement in fund sales, CEO O’Shea added: ‘We remain confident that our clear proposition in active management and our belief in the potential of mid-sized and smaller companies to deliver significant long-term outperformance over index strategies, alongside our diversified product range and powerful distribution capabilities will allow the group to perform well for our clients and our shareholders as this occurs.’

Premier Miton shares rose 6.9% to 71.62 pence each on Friday morning in London.

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