Premier Multi-Asset Distribution Fund

Fund update - first quarter 2015

For retail investors and professional advisers

Premier Multi-Asset

Distribution Fund

2

The performance information for Premier Multi-Asset Distribution Fund in this document is based on the C share class, which has the lowest charging structure of the share classes available. To help with comparisons between the thousands of funds, UK authorised funds are categorised into different groups (known as sectors) by the UK investment management trade association, known as the Investment Association (IA). The IA sector will include funds with different share classes and different charges and is provided for illustrative purposes only. Performance returns will vary between share classes due to the different charges.

Premier Multi-Asset Distribution Fund

Please refer to our ‘Glossary of terms’ on page 11 for an explanation of terminology.

Need to know

The Fund’s five essential characteristics:

Aiming to pay an income that rises over time with some long-term capital growth. For long-term investors - not for those seeking short-term gains.

Risk level – appropriate for the IA Mixed Investment 20%-60% Shares sector. Invested in risk assets – there will be times when its price will fall.

Well diversified – seeking returns and protection from a range of assets.

Contents

3. Performance summary

4. Income

5. Market performance

6. Performance drivers - asset allocation 7. Performance drivers - holdings 8. Activity - asset allocation 9. Activity - holdings 10. The complete portfolio 11. Glossary of terms 12. Important information

3

Performance summary

„ Most asset classes were quick off the blocks into 2015, with equities, bonds and commercial property generally producing firmly positive returns. The Fund performed well over the quarter, generating a healthy return that put it ahead of its average peer.

„ It is often difficult to know the true drivers of market performance until well after the event, but it seems likely that this quarter the European adoption of Quantitative Easing played a large part in the positive performance. The stabilisation of the oil price at a lower level also helped by removing a level of uncertainty that had unsettled investors last year as the price dropped off a cliff face.

„ Some exposure to European and Japanese equities helped performance, as these led the way over the quarter. In contrast, our exposure to commercial property dragged, as while this produced positive returns, they were lower than those made by other assets.

„ Our natural focus on income continued to prove useful, most obviously in continuing to generate an attractive income stream for our investors. But this focus is also supporting the capital value of the Fund, as the prices of good income-producing assets are well supported by high demand from yield-hungry investors.

Quarter ending 31.03.2015

Chart source: FE Analytics, bid to bid, total return, UK sterling basis, data based on Class C Income shares. Data to 31.03.2015. Past performance is not an indication of future returns.

Discrete Years

„ Premier Multi-Asset Distribution Fund „ IA Mixed Investment 20% to 60% Shares 0 0.51 1.52 2.53 3.54 4.55 5.56 To ta l r et ur n (%) 2000 2001 2002 2003 2004 2005 2006 ₂₀₀₇ 2008 2009 2010 2011 2012 2013 2014 2015 ( ytd ) -40 -30 -20 -10 0 10 20 30 To ta l r et ur n (%)

4

Income

¹Based on Class A Income Shares. The historic yield is net of basic rate tax and reflects distributions declared over the past twelve months as a percentage of the mid-market unit price of the fund. The yield is not guaranteed and will fluctuate. Past performance is not an indication of future returns.

Annualised historic yield as at 01.04.2015

4.1%

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Last quarterly payment made:

1.5396 pence per share (paid on: 28 January 2015) Total paid out in respect of 2014/15 financial year:

4.0286 pence per share (3 out of 4 payments) Estimated next payment:

1.5283 pence per share (to be paid: 28 April 2015)

„ Long-time holders of the Fund will have noticed the yield (see left) drop steadily over the last few years. It’s worth explaining that this figure is calculated by dividing the income paid over the last 12 months by the Fund’s share price. So in a year when the income remains the same, but the price rises, the yield will fall (this is just maths). This has been the reason for the fall in the Fund’s yield, as while the income paid out has risen since the financial crisis, the Fund’s price has risen more sharply, hence the lower yield.

Distribution history

0 1 2 3 4 5 6 2003 / 04 2004 /05 2005 /06 2006 /07 2007 /08 2008 /09 2009 /10 2010 /11 2011 /12 2012 /13 2013 /14 2014 /15 Ne t pe nc e pe r s ha re

Financial year ending (28 February)

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Market performance

Total returns for quarter ending 31.03.2015

Source: FE Analytics, bid to bid, total return, UK sterling basis. Indices: FTSE Small Cap (UK small caps), FTSE 250 (UK mid caps), FTSE All Share (UK equities), FTSE 100 (UK large caps), FE UK Property Proxy (UK commercial property), FTSE World (Global equities), FTSE Actuaries UK Conventional Gilt All Stocks (UK gilts). Past performance is not an indication of future returns.

„ Equities generated high returns for the quarter, helped by the European Central Bank’s decision to loosen monetary policy further through Quantitative Easing.

„ European equities were the stand-out performers, although in sterling terms this was dampened by the euro simultaneously weakening. So for UK-based investors, Japanese equities were the biggest winners, as their rally was boosted by a rising yen.

„ UK equities underperformed their global peers, while within the UK market large caps lagged their small and mid-sized brethren. Both factors were in part driven by the large weighting of miners, oil producers and banks in the FTSE 100, as shares in these industries fell back over the quarter.

„ Gilts ended in positive territory, although for a supposedly safe asset their prices seemed unusually volatile. Corporate bonds, meanwhile, outperformed their government-backed equivalents.

„ Commercial property prices continued to rise, albeit at a slower rate than those of other asset classes.

UK gilts 2.2% UK commercial property 2.8% UK large caps 4.2% UK equities 4.7% UK small caps 5.9% UK mid caps 6.7% Global equities 7.5% 0.0% 2.0% 4.0% 6.0% 8.0%

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UK Gilts 2.5% Sterling High Yield 2.7%

Sterling Corporate Bond 2.9% UK Smaller Companies 3.7%

UK Commercial Property 5.3% UK All Companies 5.5%

UK Equity Income 5.9%

0% 2% 4% 6% 8%

Performance drivers - asset allocation

Source: FE Analytics, bid to bid, total return, UK sterling basis. Past performance is not an indication of future returns.

IA Sectors - total return for quarter ending

31.03.2015

Relative to peer group:

Helped

„ Modest European and Japanese equity exposure „ No direct holdings in commodities

„ Negligible exposure to the euro

Hurt

„ Lower equity and bond weighting „ Overweight commercial property „ Low US dollar exposure

Fund breakdown at end of last quarter (31.12.2014)

„ UK equities 29.7%

„ European ex-UK equities 4.0%

„ Emerging market equities 3.9% „ Japanese equities 3.8%

„ Asian ex-Japan equities 2.7% „ Specialist bonds 12.0%

„ Investment grade bonds 9.7% „ High yield bonds 5.1% „ Floating rate debt 2.2% „ UK commercial property 20.0%

„ Alternative assets 1.5%

„ Cash 5.4%

7 UK Gilts 2.5%

Sterling High Yield 2.7% Sterling Corporate Bond 2.9%

UK Smaller Companies 3.7%

UK Commercial Property 5.3% UK All Companies 5.5%

UK Equity Income 5.9%

0% 2% 4% 6% 8%

Performance drivers - holdings

Notable contributors

„ Assura Group

This fund of primary healthcare facilities has made very strong returns, recently driven by demand from passive funds.

„ CatCo Reinsurance Opportunities

A rising US dollar and another claim-free quarter led to another strong period for this low-frequency-catastrophe reinsurance fund.

„ Doric Nimrod Air 2

Made up for last year’s disappointing return with a double-digit gain, vindicating our decision to top up during that weakness.

„ P2P C Global Investments

This peer-to-peer lending fund had a flying start, with investors attracted by its high income and lack of correlation with other assets.

„ Real Estate Credit Investments

Continues to generate strong returns from both its property loan and bond portfolios, resulting in excellent income and capital returns.

Notable detractors

„ CVC Credit Partners European opportunities

We have topped up this holding, as the underlying portfolio has made decent returns, but this is not yet reflected in the share price. „ GCP Infrastructure Income

We took some profits last year after its price rallied. Other investors appear to have followed suit, hence the modest loss for the quarter. „ Starwood European Real Estate Finance

Produced a negative return, but an attractive income from a quality property portfolio is likely to support the share price going forward.

8

Activity - asset allocation

Please note that the numbers above have been rounded.

„ We took profits from equities over the quarter. They were not particularly cheap as the year began, so a steep rally over the first three months looks to us like they have come a little too far too quickly.

„ Within equities, we took the most profits from Japan. We have our exposure here hedged back to sterling, which has allowed us to reap the full reward of what has been a dramatic rally in yen terms. However, their currency no longer looks particularly expensive, while their equities are not as cheap as they once were.

„ Within our bond exposure, we reduced our exposure to investment grade corporate bonds, as good value here is becoming hard to find. We topped up our exposure to high-yield bonds instead, as we have a trusted strategic bond fund that we feel can unlock niche opportunities in an asset class that lagged last year.

„ We used the proceeds of our equity profit taking, as well as some cash, to take up some new alternative opportunities. This consisted of two peer-to-peer lending funds, and a trust that specialises in solar power infrastructure. As at 31.12.2014 As at 31.03.2015 Change Equities (total) 44.1% 42.8% -1.3% UK 29.7% 29.4% -0.3% Europe ex-UK 4.0% 4.0% 0.0% Emerging markets 3.9% 3.7% -0.2% Japan 3.8% 3.2% -0.6% Asia ex-Japan 2.7% 2.5% -0.2% North America 0.0% 0.0% 0.0% Other equities 0.0% 0.0% 0.0% Bonds (total) 29.0% 29.0% 0.0% Specialist 12.0% 10.8% -1.2% Investment grade 9.7% 9.2% -0.5%

High yield corporate 5.1% 7.1% +2.0%

Floating rate debt 2.2% 1.9% -0.3%

Gilts 0.0% 0.0% 0.0%

UK commercial property 20.0% 20.0% 0.0%

Alternatives 1.5% 4.9% +3.4%

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Activity - holdings

Purchases

„ VPC Speciality Lending „ Foresight Solar Fund „ P2P ‘C’ Global Investments „ TwentyFour Dynamic Bond

Disposals

„ Assura Group

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The complete portfolio

 = New holding. Data as at 31.03.2015.

Please note that the asset allocation may be above or below 100% due to rounding Alternatives assets

VPC Speciality Lending (1.6%) Foresight Solar Fund (1.2%)

CATCo Reinsurance Opportunties (1.0%) P2P ‘C’ Global Investments (1.0%) UK commercial property

Aberdeen Property Trust (3.0%) Threadneedle UK Property Trust (2.9%) Standard Life UK Property (2.8%) Henderson UK Property (2.8%) AEW Core Property Income (1.9%) Picton Property Income (1.9%) Tritax Big Box (1.5%)

Schroder Real Estate Inv Trust (1.2%) Medic X (1.2%)

Target Healthcare (0.9%) Bonds-floating rate debt M&G European Loans (1.9%)

Corporate bonds - investment grade & high yield Hermes Multi-Strategy Credit (4.9%)

Pimco Select UK Income Bond (4.0%) Baillie Gifford Corporate Bond (2.5%) TwentyFour Dynamic Bond (2.5%) Royal London Corporate Bond (2.5%)

UK equities Franklin UK Equity Income (5.0%) Schroder Income (4.5%) Rathbone Income (4.2%) Aberforth UK Smaller Companies (3.7%) Standard Life UK Equity High Income (3.6%) Fidelity Moneybuilder Dividend (3.5%) Miton UK Multi Cap Income (2.8%) S&W UK Equity Income (2.2%) Europe ex-UK equities BlackRock Continental European Income (4.0%)

Emerging markets Charlemagne Magna Emerging Market Dividend (3.7%) Japan equities Coupland Cardiff Japan Income & Growth (3.2%) Asia Pacific ex-Japan equities Prusik Asian Equity Income (2.5%) Each holding has been categorised to help you identify the

types of asset that the Premier Multi-Asset Distribution Fund is invested in. The pie chart shows the asset allocation

of the Fund through analysis of each of the underlying holdings. So, for example, a holding which sits mainly in the ‘UK equities’ category may also give you some exposure to

international equities. UK equities 29.4%

European ex-UK equities 4.0% Emerging market equitites

3.7% Japanese equities 3.2% Asian ex-Japan equities 2.5% Specialist bonds 10.8%

Investment grade bonds 9.2% High yield 7.1% Floating rate debt 1.9%

UK commercial property 20.0%

Alternative assets 4.9%Cash 3.3%

Bonds-specialist

WyeTree Yield Distribution Fund (1.7%) CVC Credit Partners European Opportunities (1.4%)

TwentyFour Income Fund (1.4%) Doric Nimrod Air 2 (1.3%) GCP Infrastructure Income (1.2%) Real Estate Credit Investments (1.2%) Starwood European Real Estate Finance (1.0%) Longbow Senior Senior Secured UK Property (0.8%)

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Glossary of terms

Alternative assets

Non traditional investments which could include hedge funds and commodities for example and which are designed to help diversify a portfolio as they tend not to move in the same direction as the stockmarket.

Bonds

These are like loans to governments/companies in return for a fixed rate of interest.

Capital growth

The increase in value of your original investment. Caps

Refers to a company’s market capitalisation, normally small, mid and large. Equities

Another name for company shares. Fixed income/interest

Another term used for corporate and government bonds. Floating rate debt

These are bonds which do not have a fixed rate of interest. Gilts

A bond issued by the UK government. High yield bonds/corporate bonds

A bond that provides a higher income, (or yield) but is rated below investment grade bonds as it has a higher risk of default.

Historic yield

The Historic Yield reflects distributions declared over the past twelve months as a percentage of the mid-market unit price of the fund, as at the date shown.

IA Mixed Investment 20%-60% Shares sector

Funds in this sector are required to have a range of different investments. The fund must have between 20% and 60% invested in company shares (equities). At least 30% of the fund must be in fixed income investments (for example, corporate and Government bonds) and/or “cash” investments. “Cash” can include investments such as current account cash, short-term fixed income investments and certificates of deposit.

IA sectors

To help with comparisons between the thousands of funds available, they are categorised into different groups, organised and reviewed by the Investment Association (IA).

Investment grade bond

A bond which is considered relatively safe and unlikely to default on its debt repayment obligations and has been assigned a high credit rating.

Investment Association (IA)

The IA is the trade association that represents the UK investment management industry.

Structured products/structured investments

A type of product designed to combine the upside in market performance whilst limiting falls and are usually linked to the performance of an index or other underlying asset.

For more information

0333 456 9033

www.premierfunds.co.uk/multiasset

Important information

Risk of investments

Past performance is not a guide to the future. The price of shares and any income from them may go down as well as up and you may get back less than you invested. Movements in exchange rates may also affect the value of your investment. Please remember that these investments are typically intended as either medium or long term investments.

Disclaimer

Whilst every effort has been made to ensure the accuracy of the information contained within this document, we regret that we cannot accept responsibility for any omissions or errors. The information given and opinions expressed are subject to change and should not be interpreted as investment advice. Reference to any particular stock does not constitute a recommendation to buy or sell the stock.

All data is sourced to Premier unless otherwise stated.

Persons who do not have professional experience in matters relating to investments should not rely on the content of this document. Should you need advice, or if you would like to know more about this Fund, please contact your financial adviser in the first instance.

A free, English language copy of the Fund’s full prospectus, the Key Investor Information Document and Supplementary Information Document, which include all the important information you need to consider before making an investment decision, are available on the Premier website, www.premierfunds.co.uk or you can request copies by calling us on 01483 306090. For your protection, calls may be monitored and recorded for training and quality assurance purposes.

Morningstar Ratings do not constitute investment advice.  Copyright © 2015 Morningstar.  All Rights Reserved. Based on C share class.

Source & Copyright: CITYWIRE. The fund manager is rated by Citywire for his 3 year risk adjusted performance to the date shown on this document. Citywire information may not be copied and Citywire excludes any liability arising out of its use.

The methodology and calculations used by the companies or organisations that provide the fund or fund manager awards and ratings are not verified by Premier Asset Management and we therefore are unable to accept responsibility for their accuracy. Ratings and awards should not be relied upon for making an investment decision, nor are they an indication, promise or guarantee of future performance of a fund or fund manager.

Source: FTSE International Limited (“FTSE”) © FTSE 2015. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Issued by Premier Asset Management. Premier Asset Management is the marketing group for Premier Fund Managers Ltd and Premier Portfolio Managers Ltd, who are authorised and regulated by the Financial Conduct Authority of 25 The North Colonnade, Canary Wharf, London E14 5HS. 1404159567