Premier Growth fund to focus on lower risk
Income-bearing funds are still high on the agenda for Premier’s David Hambidge, as investors continue to seek shelter from higher-risk asset classes.
The investment director for pooled funds at Premier Asset Management said: “Our overall macro view is that we are likely to remain in a low-growth environment with resulting ultra-low interest rates for several years to come.
“Against this backdrop we expect equities to remain range bound and income-producing assets to remain well, which bodes well for our multi-asset income mandates.”
He said the £39.5m Premier Conservative Growth fund will continue to focus on lower risk assets that do not require a rising stock market to deliver a positive return. It remains defensively positioned and is not reliant on rising stock markets to achieve its returns, and yet has outperformed its sector average and with lower volatility since launch in July 2010 to the end of June 2012.
The fund targets a return of cash-plus 3 per cent a year over rolling three-year periods but with an emphasis on low volatility and capital preservation.
When asked whether it was true that people are flocking to income funds away from equities, Ian Wishart, owner of Edinburgh-based Wishart Wealth Management, said: “In holding beautifully diversified investment portfolios that are rebalanced and meet client needs, we can safely ignore the noise.”