To provide a high level of income together with the prospect of long-term capital growth from an actively managed portfolio of equities. The Fund has a target yield of 7% p.a., after fees, and it is intended that the target level will remain consistent over time. However, the target yield is not guaranteed.
The Premier 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. Income is paid four times a year as dividends per share.
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.
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.
- 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.
- 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
- 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.
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, Premier Global Optimum Income Fund