Due to a multitude of factors, including the increase in life expectancy leading to retirements that could span decades rather than years, the demand for long-term income solutions is expected continue to grow.
A key issue for income-hungry retirees is how they can obtain a decent, long-term level of income after they finish working which has the potential to last the duration of their retirement. Of course, the traditional annuity is still an option, but it may not necessarily be the most suitable option for everybody, and more investors are expected to consider other income investment options, such as multi-asset income funds.
Three such alternatives that may interest those approaching or in retirement are the Premier Multi-Asset Distribution Fund, Premier Multi-Asset Monthly Income Fund, and Premier Multi-Asset Growth & Income Fund. The Funds invest in a variety of other funds providing exposure to a range of assets selected by our multi-asset team for their potential to pay a regular and sustainable income as well as typically being funds managed by specialist investment teams. By diversifying in this way, the multi-asset team aim to manage risk and open up the income opportunities, rather than relying on a single asset to deliver the income. Our funds also produce a "natural" income. This is the income that the investor receives as dividends, which are aggregated from the dividends of the portfolio's underlying dividend distributions. So, the income in this case is the number of shares in a fund multiplied by the dividend per share. The income can fluctuate over time but no shares have to be cashed-in, meaning the income investor will have their full pack of shares to get paid dividends for as long as they hold the investment. The income share price will also fluctuate but should have the potential to grow over time.
|Asset allocation name||Attitude to Risk||Risk Rating|
|Premier Multi-Asset Monthly Income Fund||Balanced||3.6|
|Premier Multi-Asset Distribution Fund||Balanced||3.6|
|Premier Multi-Asset Growth & Income Fund||Adventurous||5.1|
This article is for information purposes and is only to be issued to financial intermediaries. It is not for circulation to retail clients. It expresses the opinion of the investment manager and does not constitute advice. Reference to any particular stock does not constitute a recommendation to buy or sell a stock. Persons who do not have professional experience in matters relating to investments should always speak with a financial adviser before making an investment decision.
A free, English language copy of the Funds’ full prospectus, Fund Key Investor Information Document and Supplementary Information Documents are available on the Premier website, www.premierfunds.co.uk or by calling 01483 306090.
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Premier Asset Management, Eastgate Court, High Street, Guildford, Surrey GU1 3DE
Tel: 01483 30 60 90 visit: www.premierfunds.co.uk