Investor presentation For the six months ended 31 March 2020 - PowerPoint PPT Presentation

Investor presentation For the six months ended 31 March 2020

HIGHLIGHTS AuM MERGER PRODUCT Closing AuM of Post-merger integration is A balanced product range; £9,145m ahead of target 54% being active, high conviction at 31 March 2020 single strategy funds, 46% outcome based multi-asset funds One unified product range now established Average AuM of £9,928 61% of funds 44 investment professionals are performing above median for the six months ended split across 16 teams since launch/tenure 1 31 March 2020 COVID-19 FUTURE Dedicated task force managing Continued expansion the business during COVID-19 of the fund range All staff are remote working Closing AuM of from 16 March 2020 £9,925m Senior management reduction at 30 April 2020 in salary for six months Investor presentation 2 1 Source: Premier Miton performance data as at 31 March 2020. See footnote 2 on page 23

OVERVIEW OF THE YEAR TO DATE Product AuM Revenue generation 61% of funds performing above median Eight funds with AuM in excess of £300 million Blended net revenue margin of 67.4 bps for the since tenure period (2019: 72.3 bps) Increased volatility in Q2 arising from COVID-19 Launch of Premier Managed Index Balanced Continued progress on aligning business models Fund in December 2019 Depth of product mix achieved Product mix (£bn) AuM (£bn) Net management fees (£m / bps) Margin (bps) Net revenues 4% 4% 8% 72.4 72.3 33% 67.4 14% 11.5 10% 9.9 26% 9.1 6.6 48.4 Fixed income European equity Abolute return UK equity 33.5 Global equity Multi-asset (direct) 24.0 North American equity Multi-asset (multi-manager) HY19 FY19 HY20 Sept’19 Dec’19 Mar’20 Apr’20 Investor presentation 3

A BALANCED PRODUCT SUITE Miton Premier Miton Group plc 30 September 2019 31 March 2020 Fixed income Single strategy/investment trust Abolute return 11% 4% 6% Global equity 2% 2% North American equity 2% 17% Equity Multi-asset 6% European equity Investment trusts 12% 72% Multi-asset 34% (multi-manager) £9.1bn 49% Premier 30 September 2019 45% 9% 2% 20% Equity Multi-asset 28% Fixed income UK equity Investment trusts 10% 69% Multi-asset (direct) As at 31 st March 2020, disclosed in fund factsheets Investor presentation 4

ENHANCED DISTRIBUTION CAPABILITIES AND CLIENT SERVICE 26 full time team headcount at 31 March 2020 Regional sales teams, geographically structured, supported by a telephone sales desk Strong relationships with advisers and wealth managers, effective use of technology and CRM Premier’s strong Miton’s profile with presence with software to identify and stratify client base financial wealth advisers, managers, Limited overlap from the Merger – focused on nationals, financial different intermediary channels including UK advisers, networks and institutions and wealth managers and platforms platforms multi-managers Connect platform launched in March 2020 Supported by targeted marketing and a well-defined brand Combination provides broad coverage of intermediary channels Investor presentation 5

POST-MERGER INTEGRATION IS AHEAD OF TARGET 14 Nov 19 31 Dec 19 9 Apr 20 1 May 20 14 May 20 Completion of merger between Premier Asset Core senior roles and reporting lines New dividend policy All staff migrated to a Alison Fleming joined Management Group plc and Miton Group plc completed announced single employing entity the Board as Non- Executive Director New branding launched as Premier Miton Integration planning completed and target Investors operating model defined COMPLETED 14 Nov 19 1 Mar 20 24 Apr 20 Board structure completed COVID-19 Response Committee established All fund management activities moved to a single entity, Premier Fund Managers Limited Integration Committee established Central and head office functions amalgamated Central dealing desk established to service all funds Rationalisation of existing office space commenced Bloomberg AIM portfolio order management systems combined into a single instance PLANNED By Mar 2021 By Dec 2020 By Dec 2020 By Dec 2020 Continued rationalisation of existing Harmonisation of operating Fund names aligned Prepare responsible investing processes for PRI submission in office space models across product range March 2021 Set carbon reduction target for the enlarged Group Investor presentation 6

SYNERGIES OFFER VALUE UPSIDE We expect recurring run-rate pre-tax cost synergies of approximately £7m per annum Rationalisation of central and head office functions where there are economies 20% of scale Harmonisation of operating models Year 3 (alignment of third party service providers 45% and IT systems, as well as consolidation of run-rate operations functions) savings Elimination of duplication in staff roles, whilst retaining the best of both franchises 35% These will be achieved three years after completion of the Merger at a total non-recurring cost of £10m £3m incurred YTD Investor presentation 7

INVESTMENT PERFORMANCE 15% 18% 19% 34% 12% 42% Since launch/ 1yr 3yrs 53% tenure 20% 28% 21% 12% 27% T otal number of funds T otal number of funds T otal number of funds 43 34 44 1st 2nd 3rd 4th Quartiles Source: Premier Miton performance data as at 31 March 2020. See footnote 2 on page 23 Investor presentation 8

FUND FLOWS AuM YTD (£bn) Net outflows during a difficult period for UK based investors (0.4) (Brexit, general election, COVID-19) (1.7) – Net outflows as a percentage of closing AuM for the period 4.7 was 4.3% Merger provides a better balanced business going forward 9.1 Platform for growth 6.6 Positive momentum behind high active share single strategy funds Opening Merger Net flows Market Closing Outflows from fixed income driven by redemptions from TAR sector 01.10.19 31.3.20 (worst selling IA sector over 12 months to 31 March 2020) Net flows by quarter (£m) Pick up in redemptions from multi-manager funds 75 Strong performance from diversified and macro thematic ranges 41 (89) Launch of Premier Managed Index Balanced Fund (118) (207) (87) Launch of Connect platform: No-cost online portal for advisers (145) to buy and hold Premier multi-asset funds (70) (35) Adviser use of CIPs continues to grow Q4 Q1 Q2 2019 2020 2020 Broad multi-asset product range available at different price points for Equity funds Multi-asset funds Fixed income funds the adviser market Investor presentation 9

WE AIM TO ALLOW THE BEST IDEAS FROM BOTH BUSINESSES TO FLOURISH AND DELIVER FOR OUR CLIENTS Premier UK Growth Fund as at 31.03.2020 LF Miton European Opportunities Fund as at 31.03.2020 £104m | ~ 51 holdings £1,052m | ~51 holdings T op 10 holdings FTSE All-Share T op 10 holdings FTSE World Europe ex UK Index 01 01 01 01 Frontier Developments 3.8% Astrazeneca plc 5.4% ASML Holding 3.6% Nestle 5.7% 02 02 02 02 Hikma Pharamaceauticals 3.5% HSBC Holdings 5.2% FinecoBank Banca Fineco 3.4% Roche Holding AG 4.3% 03 03 03 03 Sumo Group 3.4% Glaxosmithkline 4.2% Vestas 3.0% Novartis 3.3% 04 04 04 04 Rio Tinto 3.2% BP plc 3.9% HomeServe 3.0% ASML Holding 2.1% 05 05 05 05 IG Group Holdings 3.2% British American Tobacco 3.6% Soltec 2.8% SAP 2.1% 06 06 06 06 Sirius Real Estate 3.1% Diageo plc 3.4% Adevinta 2.8% Novo Nordisk 1.9% 07 07 07 07 B&M European Value Retail 3.1% Royal Dutch Shell (A) 3.3% Philips 2.7% Lvmh Moet Hennessey 1.9% 08 08 08 08 Glaxosmithkline 3.0% Royal Dutch Shell (B) 2.9% Wirecard 2.6% Sanofi 1.9% 09 Games Workshop Group 09 Unilever 09 Temenos 09 Total SA 3.0% 2.5% 2.5% 1.7% 10 10 10 10 Just Eat Takeaway 2.9% Rio Tinto 2.3% Sika 2.5% Allianz 1.3% 32% 37% 28.9% 26.2% Cumulative performance % Risk metrics since launch Cumulative performance % Risk metrics since launch Since 1 year 2 years 3 years Since Sharpe Sortino Volatility launch* 1 year 2 years 3 years Sharpe Sortino Volatility launch* LF Miton European Opportunities 6.7 17.4 36.5 87.9 0.87 0.77 16.5 -10.7 -4.2 -0.4 -7.0 -0.01 -0.14 19.64 Premier UK Growth IA Europe ex UK sector average -9.4 -10.5 -5.4 22.7 0.24 0.21 15.1 -18.5 -13.3 -12.2 -16.8 -0.02 -0.41 17.76 FTSE All-Share -7.8 -5.6 -1.6 33.9 0.34 0.30 16.1 FTSE World Europe ex UK index 30/250 23/246 25/241 23/244 -0.02 -0.46 17.45 Rank in sector 3/121 1/110 2/117 1/105 1/105 1/105 83/105 Rank in sector 1 1 1 1 1 1 3 Quartile 1 1 1 1 1 1 4 Quartile Investor presentation 10 10 *See footnote 2 on page 23 Source: Bloomberg, Premier Miton performance data, factsheets, as at 31 March 2020.

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