HC Charteris Premium

Income Fund

Fund Facts:

*    Top quartile performance calendar year 07/09/10/16*


*    Outperformed UK Equity Income Sector by 9.28% in 2016*


*    Target dividend yield 4‐6%


*     FE 1 crown rating


*     Ian Williams has been a Citywire A rated manager

Q & A

How is this Fund different from other income funds?

It invests only in leading UK Blue chip equities not the entire UK Equity

market. There is no small company risk and it is not run like a

traditional income fund; the Fund targets growth stocks within the UK

leading Index for performance and option writing reasons. It has a

thematic selection process

What is your competitive edge?

We look to write options for only four to five months in any calendar

year leaving the Fund unencumbered by options for seven to eight

months and therefore free to make potential capital gains. Writing

options on growth stocks usually gives higher premiums than value


Why invest in this sector?

Investing only in the leading blue chip equities means no small

company risk. These are bespoke options i.e. options on each

individual stock – not index options. These are only available on large

blue chip equities.

Why invest in this sector?

A broad range of investors would find this strategy useful – primarily

those looking for income but not at the expense of capital growth. The

underlying stock selection based purely fundamentals each


What are the risks?

Like all equity funds, the value of this investment and the income from

it can go down as well as up. Past performance should not be a guide

to future performance as market conditions, currency risk and option

price movements can affect investor returns.

* Source Bloomberg

Investment process

The holdings in the portfolio are selected by a combination of topdown thematic strategy and bottomup stock selection. Technical analysis is used extensively to help time investment decisions including the writing of covered call options

Options are only written during periods of the year when certain technical and fundamental investment criteria are met. Many similar option funds continuously run the risk of missing out on strongly rising markets

Stock selection is not limited to high yielding stocks and

the uncertainty as to whether the dividend will be maintained. The three month option premium on higher volatility shares can exceed the annual dividend yield on high income low volatility shares

Premium Income Fund

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Investment aims and Structure

This is a UK UCITS Fund which invests in a selection of leading UK blue chip equities through a combination of active stock selection and the tactical writing of covered call options. The option writing is designed to increase the distributable income paid to investors by the fund

Investment strategy

Aims to boost the income from a portfolio of leading UK Blue Chip Equities enabling investors to benefit from higher income while not necessarily missing out on capital gains

Targets growth stocks rather than traditional income stocks, which tend to underperform

Income boosted as the premium generated from the writing of call options are added to the dividends

As dividends can be cut the option proceeds are arguably a more reliable source of income

The Fund is only invested in UK Shares. By only writing options for four to five months a year, it is possible to significantly boost the income while retaining exposure to the equity market for the majority of the year.





Current break down of the HC Charteris

Risk & Reward Profile

About Charteris

Charteris Treasury Portfolio Managers Ltd was established in 1984 as an investment management company. Charteris is authorised and regulated by the Financial Conduct Authority (FCA number 114952)

The investment team has more than 200 years of experience of global financial markets.

Important Information

Past performance should not be as guide to future performance. All performance information is based on the Institutional Accumulation class unless stated otherwise. The value of this investment and the income from it can go down as well as up, it may be affected by exchange rate variations, and you may not get back the amount invested. The outlook expressed in this brochure represents the views of the Investment Manager at the time of preparation and should not be  interpreted as investment advice. The asset split detailed within the brochure are correct as at reporting period and are subject to change, whilst operating within the objectives of the Fund. This document should be read in conjunction with the Fund’s Key Investor Information document (KIID), which will exclusively form the basis of any application and the Fund’s prospectus. A comprehensive list of risk factors is detailed in the KIID and the Principal Prospectus and an investment should not be contemplated until the risks are fully considered and understood. Current tax levels and reliefs will depend on your individual circumstances and

details are also contained in the Key features (including the KIID and Principal Prospectus). If you are unsure of the suitability of this investment, please contact your Financial Adviser (if applicable). This brochure is issued by Charteris Treasury Portfolio Managers Ltd. The KIID and Prospectus are available from the ACD DMS Host Capital Ltd at www.hostcapital.com

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The value of investments can go down as well as up and you may get back less than you invested. 
We provide information about investments but do not offer personal advice and recommendations. We do not hold responsibility for assessing the suitability of an investment or evaluating the risks of such an investment for you.  If you are in any doubt as to these risks or the suitability of an investment.  Y
ou should seek independent advice.