View more on these topics

Premier fund shows income success

Premier Asset Management says its multi-asset distribution fund is performing well for income investors at a time when inflation is a concern.

The firm says anyone who bought the fund for income has seen impressive results even taking the financial crisis into account.

Its multi-asset approach provides multiple sources of income, enabling the fund to take advantage of opportunities in bond markets that were created by the financial crisis.

The fund had been growing dividends until the financial crisis in 2008 and ground out an income during the aftermath.

It got back on track with growing dividends in the 2010/11 financial year, which were up 4.8 per cent on the previous year just ahead of inflation.

Premier says people cannot afford to have a fixed income if inflation is running at 2 per cent, let alone the current rate of almost 5 per cent. But those investing in Premier multi-asset distribution for total returns, a combination of income and growth, have had a more volatile ride due to the financial crisis.

Investment director of pooled funds David Hambidge says that the disciplines for investing for income and for growth are different. At the height of the crisis, it made sense to hold assets and benefit from the income, rather than bow to the pressure facing growth investors of forced selling.

Hambidge says: “The worst thing I could have done in 2009 was to sell assets and crystalise the losses. Using buy-to-let as an analogy, I would not sell a buy-to-let if the value of a property fell but the tenant was still paying rent.

“The financial crisis created opportunities in convertibles and corporate bonds at values never seen before and which we probably will not see again. If the value of bonds fell, they were still paying the coupons when the price falls, the yield goes up. If I had sold the assets I would have had to find something to replace that income at a much higher level.”


FNZ aiming for £100bn

FNZ expects to increase its assets under administration fivefold to £100bn by the end of 2013. The technology provider says the imminent launch of new platforms it powers and the increased use of platforms brought about by the RDR will boost its current £20bn AUA. FNZ powers platforms for Axa Elevate, Standard Life, JP Morgan […]


Skandia supports ‘sunset clause’ on legacy commission  

Skandia says that introducing a ‘sunset clause’ on legacy commission would allow the industry to make a more orderly transition to adviser charging. The clause would allow advisers to continue to receive legacy commission for a period of five years, but once that time period is up, legacy commission would cease. In March, the FSA […]

Experts voice concern over GDP figures

Today’s GDP results, demonstrating 0.2 per cent growth in the second quarter, has sparked concern among industry experts. The increase, although in line with forecasts, has been described as “disappointing growth” by Jeremy Cook, the chief economist at World First foreign exchange. Cook says this “feeble figure” will strengthen views that the government’s “deficit reduction […]

Time for finance to get ‘back to basics’?

If the boom years felt like the most extravagant party for a generation, then the post crisis years are the hangover that we just can’t shake off. Banks have shouldered much of the blame for our current economic woes, reflected in historically low levels of trust – Ipsos MORI research from June 2011 found that […]


Neptune video: UK economy: a sustainable recovery?

After years of a slowly brewing economic recovery, the UK has seen a strong rise in growth in recent months. Mark Martin, manager of the Neptune UK Mid Cap Fund, discusses the strength of this recovery and whether it is sustainable.

In the video, Martin addresses the following:

• Structural features supporting the UK economy
• UK mid-caps and the potential for M&A activity
• Valuations and opportunities in house builders


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