Market's view on Premier Miton
Published on April 2024
- Stock watchers note that PMI holding shares in Tyman group, which has increased in value due to takeover news, benefits the funds managed by PMI and thus indirectly supports their management fees, but has marginal direct benefits for PMI shareholders.
- Some watchers express concerns over continued outflows from PMI, although recent market movements have offset these outflows. The perception is that PMI’s funds are average and lack distinctiveness.
- There are discussions about PMI’s share price improvement following a positive asset management update, which surprised many given the generally negative sentiment on the board regarding the company.
- It is mentioned that the resilience in the AIM and FTSE indices could positively impact PMI, although there’s caution due to high levels of redemptions faced by asset managers.
- Concerns are raised about the heavy selling of shares due to the maturity of employee share option schemes, potentially leading to an excess of shares in the market without enough buyers.
- Doubts are cast on the attractiveness of PMI’s dividend prospects due to a lack of director buys, which indicates potential uncertainty about the company’s profitability or stock value stability.
- A discussion touches on the sector-wide issue of asset managers facing redemptions and how this broader market trend could provide buying opportunities in undervalued stocks.
- The effectiveness of active management over passive funds is debated, with some suggesting that the dominance of passive investing might lead to inefficiencies that active managers could exploit, though others argue that passive strategies still outperform due to lower costs and disciplined strategies.