Premier Portfolio Managers has introduced a portfolio management service that has income as its main objective.
The service offers a choice of three portfolio funds. Premier high income bond portfolio invests in the Premier high income bond fund and has a yield of 7.6 per cent gross. It invests globally in bonds, including corporate bonds such as HMV Media Group and government bonds from Spain and New Zealand.
Premier balanced portfolio invests in the Premier selector income fund of funds. It provides exposure to 25 external funds within the UK equity and fixed-interest markets, including Rathbone income and M&G Securities high yield. The fund has a gross yield of around 3.2 per cent, with the possibility of capital growth.
Premier UK blue chip portfolio invests in the Premier dividend fund and contains around 40 stocks chosen mainly from the FTSE 100 index. Top 10 holdings include Rank Group, CGNU and National Grid. It has a yield of 3 per cent gross, but this is expected to rise.
The service could be suitable for income investors who want the flexibility to mix and match the different approaches to generate income. Henderson Global Investors offers a similar service, the managed income plan, which enables investors to draw an income of up to 10 per cent. It has a lower initial charge of 4 per cent compared with Premier's 5.25 per cent.
However, The Henderson product is limited to internal funds, while Premier extends its net wider through the eternal funds contained in the Premier balanced portfolio.