View more on these topics

Premier environmental and power fund opens investment door

Premier Asset Management – Environmental Power and Water Fund

Type: Oeic

Aim: Growth by direct and indirect investment in global companies and other organisations that are improving the efficiency of energy and water usage

Minimum investment: Lump sum £1,000 R shares, £50,000 A shares, monthly £50, monthly £100 for Isas

Investment split: 32% Asia, 26% US and South America, 25% Europe excluding the UK, 10% UK, 7% cash

Isa link: Yes

Charges: Initial 4.25%, annual 1.5% for R shares, 1% for A shares

Commission: Initial 3%, renewal 0.5% for R shares

Tel: 0845 230 9033

Premier environmental power and water invests globally in organisations that are improving the efficiency of energy and water usage. It was created by changing the name and investment mandate of the Premier smaller companies fund.

Looking at how useful the fund could be for advisers and their clients, Flowers McEwan director David Flowers says: “This investment choice opens up a wider range of possibilities for the client with either an international outlook or with a socially responsible investment bias. There are many unregulated collective investment schemes and some closed ended funds delving into the alternative energy and water arenas but there are fewer open-ended retail investment products.”
Flowers points out that the promoters  of the fund take the view that traditional sources of energy are declining around the world, as are sources of water. “As populations continue to grow this is a vicious circle which is forcing governments to invest heavily in developing other forms of energy provision and in ways to make more use of existing water supplies. If you are convinced by this story then Premier have a good offering for you to use. The managers have experience in this sector and manage some closed funds of this type – although the performance has not been great in the short term.”

Flowers adds that the fund will, by default, also double up as an international fund with a leaning toward the Far East. “Both India and China feature strongly in the current investment portfolio,” he says. The fund is viewed by Flowers as a fairly standard open-ended investment suitable for most investors , which is averagely priced . “Premier is quite good at marketing and its literature provides a reasonable basic package of information,” he says.

Considering the less attractive features of the fund Flowers says: “Being a new and developing area in which to invest, the product has to be considered a high-risk investment. No doubt technology is changing to support better use of energy and water resources but it may take a long time for investors to see a return.”

He also wonders how long it will take nuclear power to recover from recent Japanese events. “This fund has significant exposure to that sector and this could lead to great volatility or loss – certainly in the short term,” he says.

Identifying the main competition Flowers says: “There are few retail products in this sector. Premier manages investment trusts with similar fundobjectives. Access to the market is primarily through unregulated collective investment schemes and closed-ended funds which have a narrower investment spectrum. Most Oeics and unit trusts are in wider but related fields such as energy production or general environmental responsibility such as the Neptune green planet fund.”

Summing up Flowers says: “For investors willing to invest and hold for the long term this could produce a good return after a volatile journey.”

Suitability to market: Good
Investment strategy: Good
Charges: Average
Adviser remuneration: Average
Overall 8/10



Sentance says inflation could rise above 5% this year

Monetary Policy Committee external member Andrew Sentance believes CPI inflation could rise above 5 per cent this year. Giving a speech at the Confederation of British Industry’s annual lunch in Suffolk today, Sentance, who has called for the base rate to be increased since last June, said gradual increases in interest rates would counter inflation […]


Industry confidence on downward trend

Confidence among banking, finance and insurance professionals fell from +26.4 points to +18.8 points in the first quarter of 2011, according to the latest Grant Thornton UK business confidence monitor. The figure is down from +32.4 points, recorded in the first quarter of 2010. Despite the falls, confidence in the banking, finance and insurance sector […]

Budget 2011: Solar firms to be banned from VCT investment

Albion Ventures has welcomed the Government’s decision to crack down on some VCT and EIS providers by placing “feed-in tariff businesses” such as solar companies into the excluded activities list from April 2012. Managing partner Patrick Reeve says a number of VCTs have been targeting investments that do not fill a policy need. He says: […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm