The invasion of Ukraine by Russia first and foremost has a terrible human cost on the people of Ukraine and thoughts will of course be with them.
Sanctions imposed by the West will also hit ordinary Russia people who are facing economic consequences for the actions of their leader. These economic consequences are also playing out in global markets and leading to significants levels of volatility.
With the heightened uncertainty caused the introduction of geopolitical risks, investors may be inclined to shift their portfolios to income producing assets to provide compensation if they are to wait for the recovery in share prices.
We see the Premier Miton Global Sustainable Optimum Income Fund as an ideal destination for the capital of investors seeking a diversified approach to income.
The fund has provided investors with a substantial return over three years whilst paying one of the highest dividend yields of peers.
There is a focus on ESG which is reflected in their holdings that includes a number healthcare companies.
Premier Miton Global Sustainable Optimum Income Fund
The Premier Miton Global Sustainable Optimum Income Fund has a target yield of 6% through the selection of global equities. There is a emphasis on larger companies, but the fund will invest in companies of all sizes and geographies.
There is a level of attraction not only to the target yield, but the current yield which stands at 6.56%. The fund distributes income to investors on quarterly basis.
Over the past three years, the fund has returned investors 32% and 6.1% over the past year.
Portfolio
There funds portfolio is currently highly weighted the North American market with 63% of the portfolio allocated to the geography.
Europe excluding the UK accounts for 13.8%, and the UK 6.8%.
The portfolio is broadly diversified with 19% allocated to information and technology, industrials 17.6% and healthcare 16.7%.
The fund includes US income heavy weights Abbvie and Deere, highlighting the diverse nature of the fund which is likely to whether prolonged volatility better than most.
MasterCard accounts for 2.7% of the fund providing welcome stability while producing a lower than average 0.54% yield. MasterCard share are up 222% over the last 5 years.
Another reliable component of the fund is Pharma company Stryker which has a yield 1% and recently reported a 24.7% jump in full year earnings.
