Premier Miton Optimum Income Fund

The objective of the fund is to provide a yield of 7% per annum together with the prospect of capital growth over the long term, being five years or more. Five years is also the minimum recommended period for holding shares in this fund. This does not mean that the fund will achieve the objective over this, or any other, specific time period and there is a risk of loss to the original capital invested. The fund’s target yield is not guaranteed and may change if the assumptions on which the target is calculated change.

Income will be paid four times a year as dividend distributions.

The Premier Miton Optimum Income Fund receives income from two sources: dividends from investing in UK company shares and additional income from selling covered call options, which are a type of derivative contract. The fund invests in a portfolio of larger, medium and smaller sized UK company shares that can generate regular dividends, dividend growth and the potential for long-term capital growth.

Please note that the target yield and the income paid out are not guaranteed and the income paid to investors will fluctuate.

Many funds sold in the UK are grouped into sectors by the Investment Association (the trade body that represents UK investment managers), to facilitate comparison between funds with broadly similar characteristics. The fund is classified in the IA UK Equity Income sector, which we believe is a meaningful comparator to help investors assess the performance of the fund. 

There is no guarantee that the fund will achieve its objective.

The full investment objective and investment policy for the fund are published in the fund’s Prospectus.

In brief
  • Target yield of 7% per annum, after fees
  • Income paid four times a year, as dividends per share
  • Mainly invests in UK company shares
  • Focussed on companies which offer good income and income growth opportunities
  • A covered call options strategy is used to enhance the income paid out
  • Co-managed by an experienced fund manager and a specialist manager of covered call option strategies.
The fund might be suitable for investors:
  • who have basic investment markets knowledge or experience of the basic characteristics and risks of funds;
  • who understand that all of their investment is at risk;
  • whose main investment priority is to receive an income;
  • who can invest for the long-term, which means at least 5 years;
  • who understand that the amount of income they will receive is not guaranteed and can go up and down;
  • who appreciate the potential for attractive returns of investing in company shares, but also understand the higher risk that these investments may bring;
  • who understand that there are no guarantees that they will get back the full amount originally invested when they come to sell their investment;
  • who have consulted with an authorised financial adviser
The fund might not be suitable for investors:
  • who need to fully protect their investment;
  • who want on-demand full repayment of the amount invested;
  • who have no tolerance for risk
  • whose main investment priority is to grow the value of their original investment;
  • who are unable to accept the possibility that they may not get back the full amount originally invested when they come to sell their investment;
  • who are looking to invest for less than 5 years;
  • who are looking for a guaranteed level of growth on their original investment or a guaranteed amount of income.

The suitability descriptions above are for guidance only. We would always strongly recommend that investors consult with a financial adviser who can help assess risk profiles and the suitability of a fund. We are unable to provide individual investment advice or advise on the suitability of this fund for individual investors.

Before making an investment commitment, investors should:

Like to know more?

If you are interested in this fund or would like any further information, please contact us.


Risk and other important information

When you invest, your money is at risk because the value of investments, and any income from them, can go down as well as up and you could get back less than you invested. The past performance of an investment is not a guide to how it will perform in the future. Because there are many different types of investment risk and investors have different attitudes to risk, we are not able to categorise our investments as having a specific level of risk. We would therefore strongly recommend that if you do not have professional experience in matters relating to investments, you should speak with a financial adviser before making an investment decision.

Premier Miton Investors is not authorised to provide investment advice or tax advice. Before making an investment decision, it is also important that you read the key documentation for that investment which is available in the literature section of the website, by contacting a financial adviser or by getting in touch with us directly. See ‘Contact us’ for more information or if you are unsure. You can find more details about the specific risks and literature that are relevant to each type of investment on the individual fund, portfolio or investment trust website pages.