Premier Multi-Asset Growth Solutions: an overview

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  • 05 mins 46 secs
Simon Evan-Cook, Senior Investment Manager, Premier Multi-Asset Team, discusses the key focus of the two multi-asset growth funds, and the types of assets the funds will typically invest in to achieve these objectives.

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Premier Asset Management

Premier Asset Management

Tel: 0333 456 9033

Email: [email protected]

Web: www.premierfunds.co.uk

MIKE HAMMOND: Hello, my name is Mike Hammond, Sales Director at Premier Asset Management, and I’m joined today by Simon Evan-Cook, Senior Investment Manager at the Premier Multi-Asset team. Hello Simon.

SIMON EVAN-COOK: Hi Mike.

MIKE HAMMOND: Simon, the Premier Multi-Asset team run two growth funds and what I would like to do first is talk about the Premier Multi-Asset Growth and Income Fund. So could you just outline what the objective of that fund is?

SIMON EVAN-COOK: Certainly, that fund is there as the name suggests for a balance of growth and income. Really it’s a total return fund. It is there to achieve a good return capital growth with an element of income for investors. But also if you are an investor that requires an income, albeit a lower income, then it does provide that for you. And if we do our job well then that income will grow at a reasonable pace over time. So it’s what used to be called in the olden days a classic balanced fund and that’s exactly what it is as the name suggests.

MIKE HAMMOND: So, to provide the long-term growth as well as the long-term growth in income as well, what type of assets are you investing in?

SIMON EVAN-COOK: Well, this compared to our just straight income funds, this one has a lot more emphasis on equities, but obviously within that, as it is a multi-asset fund, we do use other asset classes as well. We use bonds, property, alternatives, but the emphasis is very much on equities because those have been the best assets for growing capital and for growing income over the long term.

MIKE HAMMOND: Simon, given what you’ve just said, what type of clients do you think that this fund is suitable for?

SIMON EVAN-COOK: It’s quite a broad range it can be suitable for. I mean primarily it’s very good as a long-term savings vehicle. So for someone who is looking to save for their pension or save for their kids university fees - that type of long-term objective - I think it’s a very useful fund for that. It’s going to have a larger holding in equities, so it is going for that total return basis. But because it’s got that mix of assets it’s maybe suitable for that type of investor who isn’t perhaps comfortable with 100% equities, can’t stomach the volatility that that might entail. But also it does pay a level of income out as well. It’s a modest level of income but for the type of investor who’s maybe got a large investment pot and doesn’t need such a high income from that, it’s very suitable for that type of investor as well.

MIKE HAMMOND: So the team also manage the Premier Multi-Asset Global Growth Fund. So what are the key objectives of that particular fund and how does it differentiate from the multi-asset growth and income fund?

SIMON EVAN-COOK: Well Global Growth Fund is going all out for a total return, all out for growth, as again as the name suggests. It’s there as a long-term savings and investment vehicle. So for the type of client who’s saving for a pension, has got maybe 10-20 years to build up a pot before they begin drawing that down, it’s aimed at that type of investor. Someone who’s not particularly worried about the short-term drawdowns that sometimes investing in stock markets can bring along, but is instead really trying to build up that pension pot, or that pot of assets for their kids or for university fees, whatever it may be, it’s for that long-term savings purpose.

MIKE HAMMOND: So on that basis then how do the two funds differ from an asset allocation point of view and the type of assets that you would be investing in?

SIMON EVAN-COOK: The Global Growth Fund is much more heavily focused on equities. At the current time, it’s got roughly 90% equities in there. And that’s about where it’s going to be. It’s not 100% because we do like to have other asset classes in there to smooth the journey a little bit, to help dampen down the volatility. So we can put other assets in there such as property, such as alternative investments, but for us really those assets do need to be able to generate return that is in line with what we’d expect equities to do over the long term as well. That difference from the Growth and Income Fund which has got that smaller income requirement in there so you’re more likely to find bonds as a permanent feature of the Growth and Income Fund; whereas the Global Growth currently doesn’t hold any.

MIKE HAMMOND: So Simon on the basis that you’re trying to generate returns similar to equities over the longer term, do you perceive within the fund that you’re going to get similar volatility as you would do with equities?

SIMON EVAN-COOK: At the broadest level, you have to expect this to be the most volatile of our fund range, given what its outlook is. But compared to equities what we’re really trying hard to do is reduce the volatility compared to say what you’d get from maybe a global index tracker or just a straight global equity investment. And that’s what we put those other assets in there. Those other assets will always be a minority within the fund. There’ll always be a majority of equities within the fund. But if we can find assets that are not correlated, that aren’t necessarily going to move at the same time as stock markets are, then what we could do for our investors is to make that journey smoother and therefore easier to stick it out over what could be a long-term investment profile.

MIKE HAMMOND: Thank you very much for your time today Simon, much appreciated. If you would like any further information on the two funds that you’ve just heard about, please contact us on the information provided.

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