Premier Multi-Asset Income Solutions: an overview

  • |
  • 05 mins 04 secs
Simon Evan-Cook, Senior Investment Manager, Premier Multi-Asset Team, Premier Asset Management, discusses the key objectives of the Premier Multi-Asset Distribution Fund and Premier Multi-Asset Monthly Income Fund.

Channel

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 within the Premier Multi-Asset team. Hello Simon.

SIMON EVAN-COOK: Morning.

MIKE HAMMOND: Simon first of all if we look at the Premier Multi-Asset Team they manage two income funds.

SIMON EVAN-COOK: That’s right.

MIKE HAMMOND: The Premier Multi-Asset Monthly Income Fund and the Premier Multi-Asset Distribution Fund. So firstly can we discuss the Premier Multi-Asset Monthly Income Fund, and can you just outline what the key objective of that fund is?

SIMON EVAN-COOK: Sure, as the name suggests, it’s there for an income. It’s primarily an income fund. And again as the name suggests it’s there and it pays that on a monthly basis. But it’s got some slight quirks to that income. It’s there to provide a high income to date, so it’s looking to maximise the yield without taking too many risks and to pay that out on a nice stable regular basis.

MIKE HAMMOND: So what type of assets are you actually investing in then to create that high stable income?

SIMON EVAN-COOK: Well whenever you look at income your primary assets will be bonds to start with and then equities as well. But we’ll also look at other assets such as property and alternative assets as well. And it’s really for us finding the right blend of those assets depending on what you’re being priced for, what the level of income in the market and what the risks are at any given time.

MIKE HAMMOND: So, given the objective behind the fund then, Simon, what clients do you think that this particular fund is suitable for?

SIMON EVAN-COOK: We think it’s particularly well suited to clients who are perhaps in retirement, particularly later on in retirement when the requirement for income perhaps for something like long-term care becomes paramount. And not just for that, also generally for those sorts of investors, those clients who just need a high income and they need that today, maybe capital growth is of less of a concern to them than receiving an income on a regular basis is.

MIKE HAMMOND: Simon, as we mentioned earlier, the team also manage another fund in the same sector, which is the IA mixed 20-60% shared sector, called the Premier Multi-Asset Distribution Fund. So what differentiates this fund from the Premier Multi-Asset Monthly Income?

SIMON EVAN-COOK: The key difference with this is the type of income we’re going for. It has a slightly lower yield so it pays out potentially a slightly lower income than the monthly income fund. But the real difference is that it’s going for more of a growing income than perhaps with the monthly income fund. It’s about a decent level of income today and a stable level of income but one that grows over time. And if we get that right as managers the advantage of that is that that protects your standard of living if you’re relying on that income to pay your bills, pay for your holidays, your shopping, whatever. And if we can get that to grow to match inflation over time then obviously that protects that standard of living. So that’s really the key thing with that fund is the growth element is much more pronounced in that. It also has more of a capital growth emphasis as well within that although that is secondary to income – I would stress that point.

MIKE HAMMOND: So, given the objective of the fund here is to grow the income, how does the asset allocation differentiate from the other fund?

SIMON EVAN-COOK: Well we’d use the same building blocks essentially so we’ll still have bonds, we’ll have equities as the main two building blocks plus property plus alternatives. But given the emphasis on growth within the fund there will be a greater emphasis on equities. Equities are the best assets for growing income over the long term so we’re very happy to use those to give that element of income growth over time.

MIKE HAMMOND: So finally Simon what clients do you think that that particular fund is appropriate for?

SIMON EVAN-COOK: Well again it’s for clients who need income. I mean that much is fairly obvious. So clients going into retirement I think it’s particularly well suited to. But maybe clients earlier on in their retirement, someone who has literally just retired, is going to need that income for quite some time, none of us know for how long we will actually be retired for. So early on in that retirement when you need your income to grow to match your liabilities as inflation moves along, and it’s useful to have your income growing as well. But also some investors use it as a total return vehicle as well. Income’s quite a stable, it’s quite a steady type of investment and a lot of investors like that, so yes investors use it as a total term vehicle as well.

MIKE HAMMOND: Thank you very much for your time today Simon, much appreciated. And for those of you that want more information on the funds, here are the contact details, thank you.

19121713354
For professional investors only.

Not for the distribution to retail clients. The price of shares and any income from them can go down as well as up and investors may get back less than they invested.

Contact us

Advisor helpline:

Premeir Awards