Premier Miton Income Fund

Overview

A high-conviction approach, focused on investing in quality UK listed companies that can generate dividend income.
Key points:
  • High conviction: 40 to 50 holdings.
  • Income: Harnessing the power of dividends for long term returns.
  • Quality: Invested in profitable companies with a business model that can be sustained
  • Repeatable process: A clear, robust and repeatable investment process
  • Discipline: Employing consistent practises in stock picking and portfolio construction
  • Long term: Looking at a company’s value on a 3 to 5 year time horizon frequently provides opportunities relative to the market price.

Investment approach

  • A best ideas portfolio where every stock is there to deliver both income and capital growth.
  • Quality companies are defined as having a good return on capital, a maintainable dividend and a business model that can be sustained
  • One of the great things about income investing is its natural valuation discipline. We buy companies which are attractively priced, relative to their potential dividend income, and we sell them before they get too expensive.
  • Looking at a company’s value on a 3 to 5 year time horizon frequently provides us with opportunities relative to the market price.
  • We place significant emphasis on analysing the downside potential of each stock to help avoid avoiding losing money on our holdings; a key part of making money for investors
  • A number of simple disciplines are used in both stock selection and portfolio construction to enhance decision making and deliver transparency to investors.

Share classes

Share class ISIN Fact Sheet
Sterling class C - Income shares GB0003884722 click here
Sterling class C - Accumulation shares GB00BTHH0849 click here
Sterling class A - Income shares GB0003884508 click here
Sterling class A - Income shares GB0003884508 click here
Objective

The objective of the fund is to provide an income together with capital growth over the long term, being five years or more. Five years is also the minimum recommended term 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 income will be paid twice a year, by dividend distributions.

Fund facts
Launch dates
Fund – 7 Jul 1976
Share class – 7 Jul 1976
Fund structure
OEIC
Reporting dates
Final – 30 Apr
Interim – 31 Oct
Base currency
GBP
Valuation point
12:00 noon
Investment Association sector
IA UK Equity Income
 
Performance comparator
FTSE All-Share Index
IA UK Equity Income

Fund manager

Codes

SEDOL
388472
388472
388450
38848
Bloomberg
CREINII:LN
PREINCA:LN
CREINFI:LN
CREINAI:LN

Fees

Sterling class C
Income
Sterling class C
Accumulation
Sterling class A
Income
Sterling class B
Income
Ongoing charges figure – as at 30.04.2021
0.99%
0.99%
1.74%
1.24%
OCF cap
Initial charge
4.00%

Risks

General risks

All types of investment carry a degree of risk. It is possible you could lose some, or all, of the money you invest. The level of risk varies depending on the type of investment.

Typically, you are less likely to lose money over the long term from an investment that is considered low risk, although potential returns may also be lower. Investments considered higher risk typically offer greater opportunities for better long-term returns, though the risk of losing money is also likely to be higher.

When you invest, it is important that you understand the risk to your money and are comfortable with that level of risk. If you are unsure, we would recommend that you consult a financial adviser.

Past performance of a fund is not an indication of how it will perform in the future. The share price of funds, therefore the value of your investment in the funds, and any income from them, can go down as well as up, and you could get back less than you invested.

The value of your investment might not keep up with any rise in the cost of living.

You could lose money if financial markets fall.

There is no guarantee that the investment objective of the fund will be achieved.

The levels of taxation that apply to income or capital gains from the fund, including any tax relief that may be available, will depend on your personal tax situation.

Funds with similar objectives may not perform in the same way as they are likely to have different holdings.

Fund performance will be affected by investment decisions made by the fund manager.

Other risks

Some of the main specific risks of investing in this fund are summarised here. Further detail is available in the prospectus for the fund.

Equities
Equities (shares) can experience high levels of price fluctuation.

Geographic concentration
Funds that have a strong focus on a particular country or region can carry a higher risk than funds with a more diversified portfolio.

Inflation
Higher inflation can lead to some investments falling in value, particularly those with a fixed level of interest, for example government bonds and corporate bonds.

 

Infrastructure
Investments are often in large-scale projects whose profitability can be affected by supply problems or rising prices for raw materials or natural resources. Changes in the wider economy and government regulation can also have a significant influence.

Interest rate
Changes in central bank interest rates can affect all types of assets, in particular, securities such as government bonds and corporate bonds that generally offer a fixed level of interest. If interest rates go up, the value of a bond may fall, and vice versa.

Legal and tax
The income or capital gains from investments can sometimes be affected by changes in legal and tax regulations or how these rules are applied.

Liquidity
In some instances, for example, when market conditions generally are difficult, holdings in a fund may be difficult to sell and buy at the desired price. The fund value could fall as a result.

Operational
Processes, systems and controls around your investment might fail. The more complex or unusual the investments that the fund holds, the more likely this is to happen. For example, developing markets may have less reliable systems or lower standards of governance than more developed markets.

Property and Real Estate Investment Trusts
Property values can rise and fall sharply depending on the strength of a country’s economy.