Premier Miton has made more asset allocation changes in the last 12 months than in the history of its diversified fund range, according to CIO Neil Birrell (pictured).
In his latest allocation update, Birrell revealed that equity weightings had been placed at lows across the range, while bonds had been added to the higher risk funds “for the first time in, well, I can’t remember when”.
Launched in 2013, the diversified range is made up of six actively-managed multi-asset funds of different risk levels ranging from ‘cautious’ to ‘dynamic’.
Birrell, who manages the range, said: “These are meaningful changes. They have been driven by the markedly changed economic and financial market conditions that we have experienced over the last year or so.
“We have increased the exposure [to bonds] across the range of funds, but not in an aggressive manner or taking on unwanted risk. Let’s not forget inflation and interest rates are still going up; that is not usually a good backdrop for bonds. But they have fallen a long way and are, arguably, discounting much of the bad news. Adding to the weighting in bonds and increasing the risk profile over time, strikes us as a balanced approach. We do not know what is going to happen.
“In equities, much has been made of the ‘growth’ and ‘value’ factors over the last few years. We seek to invest in good quality companies, that are growing more than their peers at attractive valuations. We have never been ‘growth’ or ‘value’ investors, although we have made more investments in companies at the growth end of the spectrum.
“We seek companies that do well though different economic conditions. But, through this year we have been adjusting our exposure and adding to companies that are more likely to benefit, relatively, in weaker economic conditions. A pragmatic approach as we enter more uncertain times.”
Birrell added that the firm had “dialled back” its appetite for property, despite being believers in the long-term outlook for the asset class.
Premier Miton diversified fund range
| Fund name | Fund size | Largest asset class weighting (as of 31 October) |
|---|---|---|
| Premier Miton Diversified Cautious Growth Fund | £57.4m | US Equities (15.5%) |
| Premier Miton Diversified Balanced Growth Fund | £74.2m | US Equities (18.5%) |
| Premier Miton Diversified Growth Fund | £403.7m | UK Equities (23.2%) |
| Premier Miton Diversified Dynamic Growth Fund | £52m | UK Equities (27.5%) |
| Premier Miton Diversified Income Fund | £80.5m | UK Equities (27.3%) |
| Premier Miton Diversified Sustainable Growth Fund | £20.3m | US Equities (40.5%) |
See also: Premier Miton AUM drops nearly 25% in a year
