The objective of the Premier Optimum Income Fund is to provide a high level of income together with the prospect of long-term capital growth from an actively managed portfolio of equities.
The Premier Optimum Income Fund targets a yield of 7% per year. To achieve this yield, the fund receives income from two sources: dividends from UK equities (shares) and additional income from selling covered call options, which are a type of derivative contract. The Fund invests in a portfolio of mainly UK company shares across a range of different industries and which are chosen for their potential for income as well as long-term investment growth. These can be larger, medium sized and smaller companies. Income is paid to investors four times a year as dividend distributions. Please note that the target yield and the income paid out are not guaranteed and the income paid to investors will fluctuate.
Important changes to the fund:
New target yield: From 1 October 2017, the fund will target a yield of 7% p.a. designed to deliver a consistent level of yield for investors seeking a high income. Income will continue to be paid quarterly. The yield is not guaranteed and can change. The 7% annual target yield calculation is the sum of each of the four yields over the four quarterly periods ending 30 November. Each quarterly yield is calculated by dividing the dividend covering the quarter by the fund price at the start of the quarter and is expressed as a percentage. For example, if the dividend distribution for the quarter was 1p and the fund price at the start of the quarter was 100p the yield for the quarter would be 1% (calculated as 1/100 expressed as a percentage).
Before 1 October 2017, there was no target yield for the fund.
The fund objective will continue to provide a high level of income together with the prospect of long term capital growth from an actively managed portfolio of UK equities. There will still be two sources of income: UK dividends received from an equity portfolio and option premium received from a covered call option strategy.
Change of fund managers: Chris White and Geoff Kirk will commence managing the fund from 1 October 2017. Chris White will focus on the management of the Premier Optimum Income Fund’s UK equity portfolio. Chris has been the manager of Premier’s two other UK equity income funds, the Premier Income Fund and Premier Monthly Income Fund, since December 2010. Geoff Kirk will focus on the management of the fund’s covered call option strategy. Geoff joined Premier in July from Schroders and he has 11 years of experience managing covered call option strategies for income enhancement.
- Aims to produce an attractive level of income, paid quarterly.
- Mainly invests in UK equities.
- An active option strategy is used to further enhance the income paid out.
- Managed by an experienced manager with over 25 years of investment experience.
- whose main investment priority is income with the potential for long-term capital growth.
- who are comfortable with putting their money aside for the long term, so at least 5 years.
- who appreciate the potential for superior returns of investing in equities, but also understand the higher risks attached to these investments.
- who are looking to invest in a portfolio which invests primarily in equities.
- who understand that there are no guarantees on the return of their original capital when they come to sell their investment.
- who are unable to accept the possibility of loss on their investment.
- who are looking for short term gains.
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.
Like to know more?
If you are interested in this Fund or would like any further information, please contact us.
Fund manager of: Premier Income Fund, Premier Monthly Income Fund and Premier Optimum Income Fund
Fund manager of: Premier Optimum Income Fund
Awards and ratings
The Defaqto 2017 Diamond Rating is based on the class B shares for the Fund. Defaqto is an independent researcher of financial products and is not authorised to provide financial advice. Premier Asset Management does not have any influence or control over the Defaqto Diamond Ratings or the methodology used to create them. We are therefore unable to guarantee their accuracy or that these will not change in the future, or that Premier Asset Management will continue to use Defaqto ratings in the future.
The Elite Rating TM system is proprietary to FundCalibre Ltd, but should not be taken as a recommendation.