Premier Income A

Targets rising income and capital growth from UK and some international companies.

  • 687.49p Price (Inc)
  • - Price (Acc)
  • 4.25% 0.00% Initial charge
  • 1.50% Annual management charge
  • 1.61% Ongoing charges
  • 5.10% Yield

Prices as at 09 December 2019, fund data last updated 05 December 2011

The fund aims to deliver consistent investment performance against its benchmark index and targets reasonable and rising income (10% above the benchmark yield) primarily from large and mid cap UK quoted companies, though international stocks are also used. To achieve this the manager runs focused portfolios and is pragmatic in that he considers the macro economic environment - i.e. its influences on economic themes and styles before targeting individual stocks.

Fund summary

Sector UK Equity Income
Structure OEIC
Launched July, 1976
Size £299m
Yield 5.10%
Charging basis Capital
Dividends paid 30 Jun, 31 Dec

Charges

Standard initial charge 4.25%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Ongoing charges figure 1.61%

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Investment process

The fund's investment process is initially influenced by top-down thematic investing, that is the manager considers the state of the world from an economic perspective and how that may influence various sectors and stocks. Then within this framework, i.e. once investment themes have been identified, stocks that fit into such categories are then analysed in their own right. Typically the manager will target three types of companies that may benefit from such themes: - GARP (Growth at a Reasonable Price) - companies that are growing fast but are under appreciated by the market. - Value investments - companies that are trading below their intrinsic worth. - Special Situations. The manager believes in backing his convictions, therefore the fund's portfolio is concentrated, although the manager does have an awareness of his bets relative to the benchmark, the FTSE All-Share index.

The fund attracted a substantial following as Credit Suisse Income under the the stewardship of Bill Mott in the 1990s. Mott later took the helm once more (when the fund was outsourced to PSigma), but the fund has recently been brought in-house by Premier. Though the new manager's track record is reasonable, we have higher conviction in other funds in the IA UK Equity Income sector. Our top rated UK equity income funds include BlackRock UK Income, Threadneedle UK Equity Income and Artemis Income.

Manager research

Average monthly relative returns

  • 14/15 0.59%
  • 15/16 -0.13%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.17%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 90.50%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Chris White

White was born in 1965 and holds a BSc (Hons) in Economics from Swansea University. He is an associate member of both the Institute of Investment Management Research and the Securities Institute. He worked in the Insolvency Department at Robson Rhodes before moving to Charterhouse Tilney as a private client investment manager in 1991. In September 1995 he joined Leggmason where he headed up Private Client department and was Director for UK Large Cap equities. In May 2002 he announced his departure to Threadneedle Investment Managers, where he became head of UK income funds. He joined Premier in 2010.

Track record

Chris White has 4.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.17%. During the worst period of relative performance (from June 1998 - December 1998) there was a decline of 8% relative to the index. The worst absolute loss has been 3%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 91%.

Periods of worst performance

Absolute -3.00% (April 1999 - February 2000)
Relative -8.00% (June 1998 - December 1998)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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Top 10 holdings

Data accurate as at 30 August 2019

7.0763% Glaxosmithkline
5.9468% Royal Dutch Shell
4.4599% Legal & General Group
4.3346% Imperial Brands Plc
3.896% Aviva
3.5707% Phoenix Group Hldgs Plc
3.2654% Bt Group
3.1353% Barclays Plc
3.054% Lloyds Banking Group Plc
2.8773% Bp
Source: Trustnet

Sector breakdown

Financials 30.00%
Consumer Services 17.00%
Industrials 16.00%
Oil & Gas 11.00%
Consumer Goods 11.00%
Health Care 7.00%
Telecommunications 3.00%
Basic Materials 3.00%
Money Market 2.00%

Portfolio

The portfolio consists of around 50 stocks.

Key Investor Information

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