Premier Portfolio Managers has introduced the Premier zero preference fund, an open-ended investment company (OEIC).
The Oeic is aimed at investors who are looking for capital growth by investing in low risk securities. It will also appeal to those investors looking to defer their capital gains tax allowance.
Premiers Oeic will invest in the zero dividend preference shares of split capital investment trusts and other closed-ended funds. The fund will have a target yield of 8 per cent. Although there is no final list available yet of the investment trusts it will invest in, some of the companies that the fund might look at include Gartmore, Jupiter, Merrill Lynch and LeggMason.
The Premier zero preference fund will be managed by David Hambidge, the companys director of managed funds, who has been at the company since 1987. He also manages the Premier UK selector growth and UK selector income funds.
According to Standard & Poors the UK selector growth and UK selector income funds are ranked 29 out of 51 funds and 7 out of 12 funds respectively, based on £1,000 invested on a bid to bid basis with gross income reinvested over three years to June 4, 2001.