Active vs. Passive investing: understanding the costs
The debate between active and passive investing has divided the investment world for years. Suppo...
Premier Miton Strategic Monthly Income Bond
The Premier Miton Strategic Monthly Income Bond fund aims to provide investors with a steady monthly income while minimising volatility and providing a better risk-adjusted income compared to both bond funds and equity income options. This fund is very active in nature.
Our opinion
As a relatively new fund it is certainly an interesting and exciting proposition for investors. This fund delivers a healthy yield, with the added bonus of it being paid monthly. It may appeal to investors seeing a well-diversified and regular source of income.Company description
Premier Miton Investors was formed in November 2019 following the merger of Premier Asset Management Group plc and Miton Group plc. The combined company manages around £11.2 billion of assets on behalf of a wide range of individual investors and institutions. The two principal areas of focus are outcome-based, multi-asset investment, and single-strategy, active equity investment. Premier Miton was awarded the Elite Provider for Equities rating in 2021.
Fund manager
Lloyd Harris and Simon Prior are the lead managers for this fund. Lloyd joined Premier Miton in August 2020 after working at Merian Global Investors from 2012 to 2020 as a fund manager. Before that, he worked at Cutwater Asset Management and Deutsche Bank, gaining experience in asset-backed trading and financial credit analysis.
Simon Prior is the second named manager, who joined Premier Miton in August 2020 as co-manager of this fund. Previously, he held co-managerial positions at Merian Global Investors from 2013 to 2020. Simon also has experience at Old Mutual plc in finance and treasury functions and holds a BSc in mathematics from the University of Hull, along with the prestigious CFA Charterholder designation.
Lloyd Harris, Simon PriorFund manager
Investment process
The process starts by developing strategic themes that are expected to influence the asset class over the long term. The managers rank sectors they like and don’t like, and then thoroughly research and debate individual names before investing. The research process involves diligent analysis of sectors and individual company financials to enhance capital preservation and mitigate idiosyncratic risks.
The fund managers generate long-range ideas related to bond and credit markets, framing their investment approach. Their research is open, robust, and repeatable, and they collaborate with other investment teams within Premier Miton. The team subscribes to independent research providers to supplement its analysis, particularly for bonds with higher default risk. The teams also engages with company management and sell-side strategists for deeper insights into potential investments.
Finally, the fund managers consider general market conditions before making investment decisions, taking into account the current market phase and supply/demand dynamics.
The team tends to avoid emerging markets, but will take more risk in credit and therefore usually has a higher proportion of high yield in the fund compared with the market.
ESG
Premier Miton follows a Responsible Investing Policy that integrates Environmental, Social, and Governance (ESG) factors alongside financial considerations into investment decisions. This fund's fundamental credit research encompasses all aspects of ESG. Through negative screening, the managers ensure that there is no exposure to companies that earn the majority of their profits from either coal, oil or tobacco.
Risk
The fund employs a key risk control strategy at the holdings level, where the fund managers conduct thorough due diligence during the research process to identify inherent risks. The fund is also actively monitored by Premier Miton's risk team and overseen by the Funds Risk Committee.
See more
Read more about this fund
adviser only
Why there’s more to come from backing bonds
This article first appeared on Money Marketing on 3 November 2023 “Investors are no longer so ent...
What role does fixed income play in portfolios today?
Bonds have been back in business in 2023 as investors can once again look to get an attractive yi...
The information, data, analyses, and opinions contained herein (1) include the proprietary information of FundCalibre, (2) may not be copied or redistributed without prior permission, (3) do not constitute investment advice offered by FundCalibre, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a fund, and (5) are not warranted to be correct, complete, or accurate. FundCalibre shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses, or opinions or their use. The Elite Fund rating is subjective in nature and reflects FundCalibre’s current expectations of future events/behaviour as they relate to a particular fund. Because such events/behaviour may turn out to be different than expected, FundCalibre does not guarantee that a fund will perform in line with its FundCalibre benchmark. Likewise, the Elite Fund rating should not be seen as any sort of guarantee or assessment of the creditworthiness of a fund nor of its underlying securities and should not be used as the sole basis for making any investment decision. FundCalibre disclaims any responsibility for trading decisions, damages or other losses resulting from any use of the Elite Fund rating. All performance data, as well as fund size, OCF, AMC, annual income (historic), share price discount or premium, is sourced directly from FE Analytics, and will change periodically.