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Premier unshackles selector funds

Premier Asset Management has converted two of its funds of funds to multi-asset funds.

Premier selector balanced has become the Premier multi-asset distribution fund while Premier selector growth has been renamed the Premier multi-asset growth fund.

The multi-asset distribution fund has a target yield of over 4 per cent and aims to outperform the Investment Management Association’s cautious managed sector over a rolling three-year period. The multi-asset growth fund aims to outperform the IMA balanced managed sector over the same timescale.

The investment policies of the funds have changed so that they are now able to hold alternative asset classes such as structured products, along with greater amounts of cash.

Alternative asset classes that are now available to multi-managers who adopt a multi-asset strategy were not allowed when the Premier selector funds were launched and the company felt that the portfolios needed updating.

Managing director, sales and marketing, Simon Weldon says the IMA cautious managed sector contains many non-income funds that do not provide a good comparison for the distribution fund in terms of performance but the fund is doing well relative to other income funds.

He says restricting the funds to buying externally managed funds did not do the best job for investors, particularly those who look for a complete managed proposition from their fund of funds provider.

The revamped funds have a wider investment remit but Weldon says fund manager David Hambidge will not be forced to make major changes to the portfolios.

Weldon says: “David Hambidge, who has managed the funds since launch, has had the handcuffs taken off a little bit. The key thing is that we want to keep our funds of funds bang up to date so that we are able to compete in a changing market.”

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