Fact sheet: Premier Optimum Income

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
UK EQUITY INCOME
Sector
UT UK Equity Income
Fund type
OEIC
Primary aim
GROWTH & INCOME
Why Money Observer Rates Premier Optimum Income

New for 2018. Uses derivatives to boost target income to 7 per cent

The highest yielder among our selection, Premier Optimum Income targets a yield of 7 per cent and is currently within touching distance of that at 6.7 per cent. It achieves this through a derivatives-based yield-boosting strategy similar to that employed by Schroder Income Maximiser, a Rated Fund from 2013 to 2017. We have replaced it this year with Premier Optimum Income on account of the latter's more nimble size (ᆪ100 million versus ᆪ1.1 billion) and better performance. It has a relatively new team in the form of Chris White and Geoff Kirk, who became co-managers in October 2017. White has worked at Premier Asset Management for seven years and runs its other income funds, while Kirk joined Premier in July 2017 from Schroders, where he worked for 11 years.

White selects 40 to 60 mainly UK high-yielding shares that he believes have good, long-term income and growth potential. He aims to find shares that are undervalued and trading at a price below their true value. To enhance the dividends from these shares, Kirk uses a covered call overwriting strategy. This involves selling short-term call options over selected shares held in the portfolio, providing an upfront cash payment that is added to the dividends already generated. In exchange for this, the rise in the price of the selected shares is capped over a defined period of time. This means that the fund may not benefit from the full rise in the price of the selected shares. Income is paid quarterly.<\p>

3 Year Performance
Fund Performance19.9%
Average of Rated Funds Group24.5%
Sector Performance14.6%
Fund information
Fund name
Premier Optimum Income C Inc
Fund manager company
Premier Asset Management
Fund type
OEIC
Fund managers
  • Geoff Kirksince 01/10/2017
  • Chris Whitesince 01/10/2017
Accolades
Fund objective
The aim of the Fund is to give you an income, paid to you each quarter, and grow the value of your original investment over the long term.
Benchmark
  • No Specified Index
Investment style
Value
Investment method
Shares
Quick stats
1 Year return
2%
1 Year rank in sector
74/94
Sector
UT UK Equity Income
Yield
7.4%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
1.01%
Fund size
£110m (£85m last year)
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
80
Mid price
121.4
Top in this sector
Fund name1 Year
Man GLG UK Income15.2%
Schroder Income14.3%
JOHCM UK Equity Income14.1%
Scot Wid Fdmtl Index UK Equity12.9%
Majedie UK Income11.7%
...more in UT UK Equity Income

Performance snapshot

Holdings snapshot

  • UK97.6%
    Money Market2.4%
  • Financials32.2%
    Industrials15.8%
    Consumer Services14.8%
    Oil & Gas14.8%
    Consumer Goods9.7%
  • UK Equities97.6%
    Money Market2.4%

Fund also available on these pension platforms:

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund6.1%-4%-2.4%2%19.9%58.4%
Sector6.4%-1.7%-0.1%4.5%14.6%45.1%
Rank within sector67 / 10089 / 9876 / 9674 / 9422 / 8515 / 81
Quartile3rd4th4th4th2nd1st
Calendar performance
 YTD - 20182017201620152014
Fund-3.8%13.8%9.3%8.7%3.3%
Sector-1.5%11.2%9.1%4.9%2.8%
Rank within sector86 / 9819 / 9338 / 8823 / 8345 / 82
Quartile4th1st2nd2nd3rd
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
-0.05
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
1.18
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
0.13
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
11.31
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
5.46
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.09
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.79
Price movement
52 week high131.45
52 week low114.38
Current bid price-
Current offer price-
Current mid price121.4
Region
1UK97.6%
2Money Market2.4%
Industry sector
1Financials32.2%
2Industrials15.8%
3Consumer Services14.8%
4Oil & Gas14.8%
5Consumer Goods9.7%
6Health Care4.2%
7Telecommunications3.7%
8Money Market2.4%
9Basic Materials1.6%
Asset type
1UK Equities97.6%
2Money Market2.4%
Individual holdings
1ROYAL DUTCH SHELL7.1%
2HSBC HLDGS6.32%
3BP5.66%
4LLOYDS BANKING GROUP PLC4.85%
5LEGAL & GENERAL GROUP4.27%
6PHOENIX GROUP HLDGS3.98%
7IMPERIAL BRANDS PLC3.85%
8BT GROUP3.69%
9MENZIES(JOHN)3.07%
Management
Fund manager group
Premier Asset Management
Fund manager company
Premier Asset Management
Fund type
OEIC
Fund objective
The aim of the Fund is to give you an income, paid to you each quarter, and grow the value of your original investment over the long term.
Benchmark
  • No Specified Index
Investment style
Value
Investment method
Shares
Fund managers
NameSinceBiography
Geoff Kirk01/10/2017Geoff Kirk joined Premier Asset Management in July 2017 to become co-manager of the Premier Optimum Income Fund. Geoff joined from Schroders where he had worked for 11 years managing covered call option strategies for income enhancement. Previously Geoff was a senior portfolio analyst at State Street Global Advisers. He is a CFA Charterholder.
Chris White01/10/2017Head of UK Equities, Chris White, joined Premier Asset Management in November 2010 to manage UK income funds and has over 25 years of investment management experience. Chris manages the Premier Income, Premier Monthly Income and Premier UK Growth Funds and is also co-fund manager of the Premier Optimum Income Fund. Previously, he was with Threadneedle for 7 years as a Director of UK Income Funds. Chris started his career with Robson Rhodes and has also worked for Charterhouse Tilney and Legg Mason as an investment manager. He holds an honours degree in Economics and is a member of the Chartered Institute for Securities & Investment and the CFA.
Compliance
IA Recognised, UCITS IV Compliant, UCITS V Compliant
Domicile
No data available.
Fund for sale in
United Kingdom
Premier Optimum Income A Acc
Initial charge4%
Annual charge1.5%
Min single investment£1,000
Min regular saving£500
Available in ISAYes
Ongoing charge (OCF)1.76%
Total expense ratio (TER)2.17%
Bid price-
Offer price-
Mid price255.31
CurrencyGBX
Price updated24/04/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeDBX0
Premier Optimum Income A Inc
Initial charge4%
Annual charge1.5%
Min single investment£1,000
Min regular saving£500
Available in ISAYes
Ongoing charge (OCF)1.76%
Total expense ratio (TER)2.17%
Bid price-
Offer price-
Mid price111.07
CurrencyGBX
Price updated24/04/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeBD03
Premier Optimum Income B Inc
Initial charge-
Annual charge1%
Min single investment£50,000
Min regular saving£500
Available in ISAYes
Ongoing charge (OCF)1.26%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price113.84
CurrencyGBX
Price updated24/04/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeGH5T
Premier Optimum Income C Inc
Initial charge-
Annual charge0.75%
Min single investment£250,000
Min regular saving£25,000
Available in ISAYes
Ongoing charge (OCF)1.01%
Total expense ratio (TER)1.42%
Bid price-
Offer price-
Mid price121.4
CurrencyGBX
Price updated24/04/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeDBX1
Data provided by

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