Premier MA Monthly fund flying high for UK income

The £62.73m fund is riding high in the Investment Management Association’s Mixed Investment 20-60 per cent sector, positioned second out of 126 funds with a year-to-date trailing return of 14.91 per cent.

The fund targets income across a wide range of assets with 35.39 per cent invested in equities and 21.84 per cent in bonds. Geographically, the fund is mainly concerned with income opportunities in the UK with 65.79 per cent of its assets.

Its biggest holding is the Schroder Income Maximiser at 4.93 per cent which is heavily invested in the UK at 84.75 per cent, with blue-chip companies the main holdings.

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David Hambridge and Ian Rees have co-managed the Premier fund since 2010 and were joined a year later by David Thornton. Its total expense ratio is 2.18 per cent, with an annual management charge of 1.5 per cent and an initial charge of 4 per cent.

The initial investment allowed is £1000 and the limit for additional savings is £500. It can be accessed through an Isa.

It has been a much less of a smooth ride for the PFS PanBalanced Fund which is ranked 117th in the same sector. The £15.23m fund achieved a three-year return of just 5.66 per cent, way below the sector average of 23.25 per cent.

The fund has centered on exchange-traded finds but its assets can be found across a range of regions with the UK at 35.89 per cent, the US at 24.18 per cent and emerging Asia at 10.82 per cent.

The iShares corporate bond is the fund’s biggest holding at 19.84 per cent followed by the Vanguard S&P 100 ETF at 11.01 per cent.

The initial charge is 3 per cent, the AMC of 0.9 per cent and the TER 1.48 per cent. The minimum initial investment is £1000 while additional and monthly savings of £500 are allowed. The fund is available through an Isa.

Adviser says...

Gavin Haynes, managing director of Bristol-based Whitechurch Securities, said: “The Premier fund ticks a lot of boxes for investors seeking a balanced, multi-asset proposition. It provides a well-diversified asset mix across mainstream and alternative actively managed funds.

“The PFS fund provides access to a diversified portfolio of ETFs but since launch it has generated a total return of less than 9 per cent in a positive environment for most asset classes. It illustrates that looking for the cheap option is not always best.”

Top five holdings

Premier Multi-Asset Monthly Income

Schroder Income Maximiser 4.93%

Franklin UK Equity Income 4.89%

Standard Life UK Equity High Income - 4.85%

Rathbone Income 4.83%

Twentyfour Dynamic Bond 4.69%

PFS PanBalanced Fund

iShares Corporate Bond 19.84%

Vanguard FTSE 100 ETF 11.01%

Vanguard S&P 500 ETF 8.83%

iShares UK Property 7.34%

HSBC S&P 500 ETF 6.15%