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SIMPLYBIZ INVESTMENT SERVICES
It is rare to go much more than a year without a significant market correction and individual stocks are more volatile still . These day-to-day moves mean that the yields available on investments also move up and down , of course in the opposite direction to the price movements .
One way to take advantage of this is as a market timing tool . Last autumn there were many very attractive yields available on individual equities and the overall portfolio holdings of the Premier Miton Cautious Monthly Income Fund had an exceptionally high yield . We took this as a signal to buy and have subsequently been proven right . A similar occurrence arose during the UK government bond debacle in 2022 . At that time , we were able to buy many very attractively yielding corporate bonds . In both cases , the price signal from the attractive yields available at the time led us to make successful longerterm investments and build the income on the portfolio . The level of income paid may fluctuate and is not guaranteed .
Taking advantage of these periods of market volatility has greatly benefitted both the income growth and
the capital growth of our portfolio . Over the 5 years to 31.07.2024 the Premier Miton Cautious Monthly Income Fund has returned 24.28 % compared to a return of 13.97 % from the IA Mixed Investment 20-60 % shares sector *. Past performance is not a reliable indicator of future returns .
The same occurs at the induvial security level to an even greater degree , particularly with equities . Individual equities are even more volatile than the aggregate indices . Our continuous search for attractive income means we will be prepared for times when solid income paying stocks are undervalued . Our pragmatic approach means we are very comfortable to move on , should these stocks become less attractively valued . In this way we are continuously looking to build the income in the fund over time .
As a consequence , we can turn the enemy of postretirement investing , volatility , into an advantage within the portfolio to the benefit of not just our natural income clients but also those who are encashing their units .
RISKS
The value of stock market investments will fluctuate , which will cause fund prices to fall as well as rise and investors may not get back the original amount invested .
Forecasts are not a reliable indicator of future returns . This fund may experience high volatility due to the composition of the portfolio or the portfolio management techniques used .
FOR INFORMATION PURPOSES ONLY . THE VIEWS AND OPINIONS EXPRESSED HERE ARE THOSE OF THE AUTHOR AT THE TIME OF WRITING AND CAN CHANGE ; THEY MAY NOT REPRESENT THE VIEWS OF PREMIER MITON AND SHOULD NOT BE TAKEN AS STATEMENTS OF FACT , NOR SHOULD THEY BE RELIED UPON FOR MAKING INVESTMENT DECISIONS .
IMPORTANT INFORMATION For Investment Professionals only . No other persons should rely on the information contained within .
Whilst every effort has been made to ensure the accuracy of the information provided , we regret that we cannot accept responsibility for any omissions or errors . All data is sourced to Premier Miton unless stated otherwise .
* Source : FE Analytics . Based on Sterling class B - Accumulation units , on a total return basis to 31 July 2024 . Performance is based on net income reinvested , bid to bid basis .
Performance is shown net of fees with income reinvested .
The views and opinions expressed here are those of the author at the time of writing and can change ; they may not represent the views of Premier Miton and should not be taken as statements of fact , nor should they be relied upon for making investment decisions .
Reference to any particular investment does not constitute a recommendation to buy or sell the investment .
A free , English language copy of the Prospectus , Key Investor Information Document and Supplementary Information Document are available on the Premier Miton website , or copies can be requested by calling 0333 456 4560 or emailing contactus @ premiermiton . com .
Source : MSCI . Neither MSCI nor any other party involved in or related to compiling , computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data ( or the results to be obtained by the use thereof ), and all such parties hereby expressly disclaim all warranties of originality , accuracy , completeness , merchantability or fitness for a particular purpose with respect to any of such data . Without limiting any of the foregoing , in no event shall MSCI , any of its affiliates or any third party involved in or related to compiling , computing or creating the data have any liability for any direct , indirect , special , punitive , consequential or any other damages ( including lost profits ) even if notified of the possibility of such damages . No further distribution or dissemination of the MSCI data is permitted without MSCI ' s express written consent .
This document and all of the information contained in it , including without limitation all text , data , graphs , charts , images ( collectively , the “ Information ”) is the property of Premier Portfolio Managers and Premier Fund Managers Limited (“ Premier Miton ”) or any third party involved in providing or compiling any Information ( collectively , with Premier Miton , the “ Data Providers ”) and is provided for informational purposes only . The Information may not be modified , reverse-engineered , manipulated , reproduced or distributed in whole or in part without prior written permission from Premier Miton . All rights in the Information are reserved by Premier Miton and / or its Data Providers .
Financial Promotion issued by Premier Portfolio Managers Limited , ( registered in England no . 01235867 ), authorised and regulated by the Financial Conduct Authority , a member of the Premier Miton Investors marketing group and a subsidiary of Premier Miton Group plc ( registered in England no . 06306664 ). Registered office : Eastgate Court , High Street , Guildford , Surrey GU1 3DE .
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