Premier looks to add ‘oomph’ to Smith’s strategy

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Premier looks to add ‘oomph’ to Smith’s strategy

Premier Asset Management is intending to launch a more aggressive version of Paul Smith’s £339m Defensive Growth fund in the new year.

Investment Adviser understands Premier is seeking to unveil a cash-plus 3 per cent vehicle to be run by Mr Smith, subject to FCA approval.

The manager’s Defensive Growth fund is a feature on many investors’ buy lists because of its ability to protect on the downside. The fund focuses on “fixed life” investments – products with a defined start and end date – in a bid to generate “steady returns”.

One fund buyer, who wished to remain anonymous, said of the proposed launch: “Some investors may be saying they like what Paul Smith does but they want a slightly more oomphy version, targeting higher returns.”

The existing multi-asset portfolio, which sits in the IA Targeted Absolute Return sector, aims to generate “steady returns with less severe rises and falls in price than company shares”, while not being dependent on market beta.

It aims to match cash on a rolling 12-month basis and has returned 10.5 per cent over the past three years, according to data from FE Analytics.

Launched in 2010, Defensive Growth’s top 10 positions currently include a selection of zero-dividend preference shares and defensive autocall structured products, according to a recent update from the fund house.

Premier declined to comment on the launch.