Premier UK Money Market Fund
Interim Report and Financial Statements (unaudited)
For the period from 1st August 2010 to 31st January 2011
PREMIER
ASSET MANAGEMENT
INDEX
Management and Administration
Registered Office and Directors ...................................................................2
Fund Information ........................................................................................2
Report of the Manager to the Unitholders of the Fund ................................2
Directors’ Statement ...................................................................................2
The Premier UK Money Market Fund
Comparative Tables .....................................................................................3
Total Expense Ratio .....................................................................................3
Portfolio Turnover Rate ...............................................................................3
Investment Objective and Policy ..................................................................3
Investment Review ...................................................................................3-4
Portfolio of Investments ..............................................................................5
Statement of Total Return, Statement of Change in Net Assets Attributable
to Unitholders & Balance Sheet ...................................................................6
Note to the Financial Statements.................................................................7
Distribution Tables.......................................................................................7
1
MANAGEMENT AND ADMINISTRATION
The Manager and registered office of the Premier UK Money Market Fund REPORT OF THE MANAGER TO THE UNITHOLDERS OF THE FUND
(“the Fund”):
The Manager presents its report and unaudited financial statements of the Fund
PREMIER PORTFOLIO MANAGERS LIMITED for the period 1st August 2010 to 31st January 2011.
Eastgate Court, High Street,
This report has been prepared in accordance with the requirements of the
Guildford, Surrey, GU1 3DE
Collective Investment Schemes Sourcebook as issued and amended by the
Premier Portfolio Managers Limited is authorised and regulated by the Financial Financial Services Authority.
Services Authority (“FSA”) and is a member of the Investment Management
Association (“IMA”). Premier Portfolio Managers Limited and Premier Fund DIRECTORS’ STATEMENT
Managers Limited are both members of the Premier Asset Management
Marketing Group. In accordance with the Regulations, we hereby certify the report on behalf of
the directors of Premier Portfolio Managers Limited.
DIRECTORS OF THE Mike O’Shea (Chairman)
MANAGER: Neil Macpherson (Finance Director)
Simon Weldon (Managing Director, Sales and
Marketing)
Mark Friend (Managing Director, Operations)
Mike Hammond (IFA Sales Director)
INVESTMENT ADVISER: Premier Fund Managers Limited is the Investment Neil Macpherson Mark Friend
Adviser to the Premier UK Money Market Fund. Finance Director (of the Manager) Managing Director, Operations (of the Manager)
25th March 2011
TRUSTEE: The Royal Bank of Scotland plc
Trustee & Depositary Services
CLOSED FUNDS
The Broadstone,
Following the closure of the Premier Money Market Fund on 31 January 2008,
50 South Gyle Crescent,
we can report that this fund is now fully wound up and that the final audited
Edinburgh, EH12 9UZ termination accounts have been prepared and audited. Copies of these
termination accounts dated 31 October 2010 are available free of charge by
AUDITOR: Grant Thornton UK LLP calling Premier on 01483 306090.
30 Finsbury Square,
London, EC2P 2YU
IMPORTANT CHANGES
ADMINISTRATOR & Northern Trust Global Fund Services Limited Following an EGM on the 20 January 2011, the following changes were made
to the Fund and became effective as at 21 January 2011.
REGISTRAR: PO Box 55736,
50 Bank Street, 1) Adoption of wider investment powers by the Fund, in line with COLL rules.
Canary Wharf, 2) Amendment to the Fund’s investment policy, in line with COLL rules.
London, E14 1BT
3) Introduction of new charges payable out of the scheme property of the Fund.
4) Introduction of new eligible securities markets and eligible derivatives markets,
FUND INFORMATION in line with COLL rules.
The Fund is an authorised unit trust scheme under section 237 of the Financial
Services and Markets Act 2000 and is constituted by its Trust Deed.
The Fund is a UCITS scheme which complies with the FSA’s Collective Investment
Schemes sourcebook.
2
PREMIER UK MONEY MARKET FUND
COMPARATIvE TABLES
NAv of Fund
Performance Record Total NAV (£)
Calendar Year High (p) Low (p) 31/07/2009 100,806,114
Income Units 31/07/2010 108,403,732
2006 1
50.35 49.89 31/01/2011 100,927,584
2007 50.61 49.88 1
From 7th September 2006 to 31st December 2006.
2008 50.84 49.90 2
To 31st January 2011.
2009 50.61 50.11
3
The net asset value per unit is calculated on a bid basis and excludes any
2010 50.28 50.13
distribution payable.
20112 50.28 50.26
Accumulation Units TOTAL EXPENSE RATIO (TER)
20061 113.08 109.40
31/07/10
2007 117.81 113.12
0.60%
2008 123.07 117.79
The TER shows the annual operating expenses of the Fund including the annual
2009 125.62 123.12
management charge and other expenses. It does not include transaction
2010 126.15 125.63 charges. Funds highlight the TER to help you compare the annual operating
20112 126.19 126.13 expenses of different schemes. The TER for income and accumulation units is
the same.
Income/Accumulation Record
INvESTMENT OBJECTIvE AND POLICY
Net Income per
Calendar Year Unit (p)
The investment objective of the Premier UK Money Market Fund is to generate
Income Units income.
20061 1.6279
The Fund will achieve its objective through the active management of a
2007 1.9539 diversified portfolio of UK deposits and short dated money market instruments.
2008 2.1508 The Fund may also invest in other deposits and money market instruments,
transferable securities, collective investment schemes, bonds, warrants, cash
2009 1.1162
and near cash. The Fund may also borrow and may enter into stock lending
2010 0.1908 and underwriting arrangements.
20112 0.0472
The Fund may also invest in derivatives for both efficient portfolio management
Accumulation Units purposes (including hedging) and in order to achieve the Fund’s investment
objective.
2006 3.5924
2007 4.4665
INvESTMENT REvIEW
2008 5.1250
2009 2.7514 PERFORMANCE
2010 0.4769 Over the interim period the Fund returned +0.23% as compared to +0.16%
20112 0.1184 from the IMA Money Market sector.
MARKET REVIEw
Net Asset Value (NAV)
The UK base rate was held at the emergency level of 0.50%. January’s Monetary
Units in NAv per Unit Policy Committee (MPC) decision was split three ways, although noticeably
As at Issue (p)3 Andrew Sentence was joined by another voice in voting for a rate hike. In
Income Units fact, overall the minutes revealed more of an appetite by the MPC to tighten
policy amid heightened inflation concerns. The Consumer Price Index came in
31/07/2009 73,697,396 50.34
higher than the consensus forecast, raising the annual inflation rate to 3.7%.
31/07/2010 64,745,162 50.24 Inflation expectations and the consensus forecasts have both risen and the Bank
31/01/2011 58,526,831 50.26 of England Governor will soon be preparing his fifth consecutive letter to the
Chancellor of the Exchequer explaining the reasons. However, towards the end
Accumulation Units of the reporting period, the surprise -0.5% contraction in GDP (Gross Domestic
31/07/2009 50,961,940 125.01 Product) was more than December’s snow fall could explain. Therefore, the base
31/07/2010 60,289,806 125.85 rate is likely to remain unchanged during the next few months. Unfortunately,
the subdued outlook for housing and the Bank of England’s Credit Conditions
31/01/2011 56,698,181 126.13 Survey also provide little to smile about.
PORTFOLIO ACTIVITy
The Premier UK Money Market Fund continues to rank top quartile in the IMA
Money Market Sector for all standard reporting periods from six months to ten
years, whilst having some of the lowest risk statistics in the sector. Stable returns
and a cash-like profile remain the key characteristics of the Fund.
3
PREMIER UK MONEY MARKET FUND
Despite some gloomy economic releases, Sterling LIBOR rose at a faster rate
towards the end of January, perhaps stirred by the MPC minutes. In previous
months we had gradually reduced the maturity profile of the Fund but we took
this as an opportunity to extend to 87 days as we still believe we have at least
a few months before money market rate rises will offset the additional yield
obtained by depositing money for longer periods. However, the two year gilt
yields the most, relative to the base rate, in more than seven years, depicting the
expectation of base rate rises during the year. These rate rises may occur sooner
or sharper than the majority of the market anticipates therefore we continue
to hold an enlarged exposure to floating rate notes. In addition, approximately
two thirds of the Fund is now in the two month maturity category or shorter
which means as rates rise we can quickly redeposit at higher levels increasing
the yield of the Fund.
OUTLOOK
We would expect the returns from cash to be much more competitive with
inflation during the next few years and the yield on the Fund to rise despite a
shorter maturity profile.
Source: Premier Fund Managers Limited, February 2011. Performance figures
are taken from Financial Express Analytics and are quoted on a bid to bid, total
return, UK sterling basis.
The top ten purchases and sales during the period were as follows:
Purchases Costs Sales Proceeds
£’000 £’000
Lloyds Banking Group CD European Investment Bank
1.45% 24/10/2011 5,700 FRN 06/08/2010 10,748
GE Capital UK Fund 4.75% Merrill Lynch 5.125%
15/03/2011 5,175 24/09/10 7,846
ING Bank CD 0.72% GE Capital UK Fund 4.75%
10/08/2010 5,000 15/12/2010 7,825
HBOS Treasury 4.375% Lloyds Banking Group CD
22/12/2010 4,745 0.86% 19/08/2010 6,000
Rabobank FRN 11/10/2011 4,003 Lloyds Banking Group CD
Lloyds Banking Group CD 1.45% 20/06/2011 5,705
1.05% 25/02/11 4,000 Credit Agricole CD 0.75%
Credit Agricole CD 0.98% 20/09/2010 5,000
07/03/2011 3,000 Nationwide Building Society
Rabobank CD 3M LIBOR + 6bp CD 0.66% 06/09/2010 5,000
17/08/2011 3,000 ING Bank CD 0.72%
Societe Generale CD 0.66% 10/08/2010 5,000
01/12/2010 3,000 HBOS Treasury 4.375%
The Royal Bank of Scotland 22/12/2010 4,732
CD 1.00% 26/07/2011 3,000 Lloyds Banking Group CD
1.05% 25/02/11 4,000
Total cost of all securities Total proceeds from all
purchased 155,245 securities sold 152,835
4
PREMIER UK MONEY MARKET FUND
PORTFOLIO OF INvESTMENTS
As at 31st January 2011 Total Total
Market Value of Market Value of
Value Fund Value Fund
Holding Investment £’000 % Holding Investment £’000 %
CORPORATE BOND 42.51% (38.17%) CASH DEPOSIT - STERLING 0.00% (5.77%)
800,000 ANZ Banking Group 4.75% 30/03/2011 805 0.80
5,000,000 Bank of America FRN 02/02/2011* 5,000 4.96
250,000 BNP Paribas 6.125% 27/05/2011 254 0.25 Total Value of Investments 103,675 102.72
2,000,000 BNP Paribas FRN 29/09/2011* 2,001 1.98
2,900,000 Citigroup FRN 10/08/2011* 2,891 2.86 Net Other Liabilities (2,747) (2.72)
2,770,000 Citigroup 5.25% 14/06/2011 2,807 2.78
1,000,000 Citigroup FRN 01/2012 * 991 0.98 Total Net Assets 100,928 100.00
2,000,000 Commonwealth Bank of Australia 6.00%
18/03/2011 2,011 1.99
1,000,000 Countrywide Financial 5.125% 17/02/2011 1,000 0.99
Figures in brackets represent sector distribution at 31st July 2010.
2,000,000 Credit Agricole FRN 02/02/2011* 2,000 1.98
2,923,000 GE Capital European Fund Ireland 4.75% *Floating Rate Investments.
15/06/2011 2,959 2.93
8,200,000 GE Capital UK Fund 4.75% 15/03/2011 8,231 8.17
3,250,000 Merrill Lynch 6.644% 16/02/2011 3,256 3.24 Debt Security Rating Allocation is as follows:
700,000 Morgan Stanley 7.50% 11/04/2011 707 0.70
2,060,000 National Australia Bank FRN 08/08/2011* 2,060 2.04 Rating Percentage of Debt Securities
4,000,000 Rabobank FRN 11/10/2011* 4,002 3.98 %
1,000,000 Rabobank Nederland FRN 20/07/2011* 1,000 0.99 A-1+ 44.80
700,000 Royal Bank of Scotland FRN 20/04/2011* 701 0.69 A-1 55.20
200,000 Santander International Debt FRN 18/07/2011* 199 0.20
42,875 42.51
CERTIFICATES OF DEPOSIT 60.21% (55.61%)
2,000,000 Barclays CD 1.00% 16/05/2011 2,000 1.98
2,000,000 Barclays CD 1.00% 05/07/2011 2,000 1.98
2,000,000 Barclays CD 1.22% 03/05/2011 2,000 1.98
3,000,000 Credit Agricole CD 0.88% 15/04/2011 3,000 2.97
3,000,000 Credit Agricole CD 0.98% 07/03/2011 3,000 2.97
1,000,000 Credit Agricole CD 1.05% 11/07/2011 1,000 0.99
2,000,000 Fortis Bank CD 0.73% 11/04/2011 2,000 1.98
2,000,000 Fortis Bank CD 0.70% 05/04/2011 2,000 1.98
2,000,000 ING Bank CD 0.73% 10/02/2011 2,000 1.98
2,000,000 ING Bank CD 1.45% 01/12/2011 2,000 1.98
2,000,000 ING Bank CD 1.02% 20/06/2011 2,000 1.98
3,000,000 Lloyds Banking Group CD 0.92% 27/06/2011 3,000 2.97
2,000,000 Lloyds Banking Group CD 1.015% 07/04/2011 2,000 1.99
2,000,000 Lloyds Banking Group CD 1.45% 24/10/2011 2,000 1.98
2,000,000 Nationwide Building Society CD 1.00% 26/07/2011 2,000 1.98
2,000,000 Nordea Bank CD 0.72% 11/03/2011 2,000 1.98
1,000,000 Rabobank CD 0.95% 05/05/2011 1,000 0.99
3,000,000 Rabobank CD 3M LIBOR + 6bp 17/08/2011 3,000 2.97
3,000,000 Societe Generale CD 0.70% 01/03/2011 3,000 2.97
2,000,000 Societe Generale CD 0.75% 01/02/2011 2,000 1.98
2,000,000 Societe Generale CD 1.00% 01/08/2011 2,000 1.98
2,000,000 Societe Generale CD 1.38% 27/01/2012 2,000 1.98
3,000,000 Standard Chartered Bank CD 0.65% 24/02/2011 3,000 2.97
500,000 Svenska Handelsbanken CD 0.80% 10/02/2011 500 0.50
3,000,000 The Royal Bank of Scotland CD 1.00% 26/07/2011 3,000 2.97
2,000,000 The Royal Bank of Scotland CD 0.64% 15/02/2011 2,000 1.98
1,300,000 The Royal Bank of Scotland CD 1.26% 22/02/2011 1,300 1.29
2,000,000 UBS CD 1.12% 14/02/2011 2,000 1.98
2,000,000 UBS CD 1.27% 12/01/2012 2,000 1.98
60,800 60.21
5
PREMIER UK MONEY MARKET FUND
STATEMENT OF TOTAL RETURN BALANCE SHEET
For the period ended 31st January 2011 As at 31st January 2011
31/01/11 31/01/10 31/01/11 31/07/10
£’000 £’000 £’000 £’000 £’000 £’000
Income ASSETS
Net capital gains/(losses) 18 (75) Investment assets 103,675 107,904
Revenue 583 879
Debtors 1,260 1,111
Expenses (315) (328) Cash and bank balances - 454
Finance costs: Interest - (1)
Total other assets 1,260 1,565
Net revenue before taxation 268 550
Taxation (8) - Total assets 104,935 109,469
Net revenue after taxation 260 550 LIABILITIES
Creditors (2,720) (595)
Total return before distributions 278 475 Bank overdrafts (1,259) (438)
Distributions payable on income units (28) (32)
Finance costs: Distributions (259) (552)
Total liabilities (4,007) (1,065)
Change in net assets
Net assets attributable to
attributable to unitholders
unitholders 100,928 108,404
from investment activities 19 (77)
On behalf of Premier Portfolio Managers Limited.
STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS
For the period ended 31st January 2011
31/01/111 31/01/10
£’000 £’000 £’000 £’000 Neil Macpherson Mark Friend
Opening net assets Finance Director (of the Manager) Managing Director, Operations (of the Manager)
attributable to unitholders 108,404 100,806
25th March 2011
Amounts receivable on issue
of units 43,374 64,079
Amounts payable on cancellation
of units (51,006) (45,335)
(7,632) 18,744
Change in net assets
attributable to unitholders
from investment activities 19 (77)
Retained distributions on
accumulation units 137 300
Closing net assets
attributable to unitholders 100,928 119,773
Opening net assets attributable to unitholders for current period differs from
1
the comparative period closing balance as they are not consecutive periods.
6
PREMIER UK MONEY MARKET FUND
NOTE TO THE FINANCIAL STATEMENTS
ACCOUNTING POLICIES
The interim financial statements have been prepared on the same basis as the
audited annual financial statements for the year ended 31st July 2010. They are
in accordance with the historical cost basis, as modified by the revaluation of
investments, and in accordance with the Statement of Recommended Practice
for Authorised Funds issued by the Investment Management Association (IMA),
in October 2010 (the IMA SORP 2010).
DISTRIBUTION TABLES
For the period from 1st August 2010 to 31st October 2010
First Interim Interest distribution in pence per unit
Income Units
Distribution
Gross Income Net Paid
Income Tax (20%) Income Equalisation 31/12/10 31/12/09
Group 1 0.0668 0.0134 0.0534 - 0.0534 0.1744
Group 2 0.0100 0.0020 0.0080 0.0454 0.0534 0.1744
Accumulation Units
Amount
Gross Income Net Accumulated
Income Tax (20%) Income Equalisation 31/12/10 31/12/09
Group 1 0.1673 0.0335 0.1338 - 0.1338 0.4346
Group 2 0.0719 0.0144 0.0575 0.0763 0.1338 0.4346
For the period from 1st November 2010 to 31st January 2011
Second Interim Interest distribution in pence per unit
Income Units
Distribution
Gross Income Net Payable/Paid
Income Tax (20%) Income Equalisation 31/03/11 31/03/10
Group 1 0.0590 0.0118 0.0472 - 0.0472 0.0441
Group 2 0.0258 0.0052 0.0206 0.0266 0.0472 0.0441
Accumulation Units
Amount
Gross Income Net Accumulated
Income Tax (20%) Income Equalisation 31/03/11 31/03/10
Group 1 0.1480 0.0296 0.1184 - 0.1184 0.1095
Group 2 0.0800 0.0160 0.0640 0.0544 0.1184 0.1095
7
Administration Queries
Premier Portfolio Managers Limited
PO BOX 55736,
50 Bank Street, Canary Wharf,
London E14 1BT
Tel: 0845 605 63 63
Further Information
Premier Portfolio Managers Limited
Eastgate Court, High Street,
Guildford, Surrey GU1 3DE
Tel: 01483 306 090
Fax: 01483 300 845
email: enquiries@premierfunds.co.uk
Web: www.premierassetmanagement.co.uk
This document is issued by:
Premier Portfolio Managers Limited
Eastgate Court, High Street, Guildford, Surrey GU1 3DE
Premier Portfolio Managers Limited and Premier Fund Managers Limited are both members of the Premier Asset Management Marketing Group and
are authorised and regulated by the Financial Services Authority of 25 The North Colonnade, Canary Wharf, London E14 5HS. Premier Portfolio
Managers Limited is an ISA manager and markets a number of funds. Premier Fund Managers Limited manages these and other funds and provides
discretionary portfolio management services. Premier Portfolio Managers Limited is also a member of the Investment Management Association.
You should remember that past performance is not a guide to the future. The price of shares and the income from them may go down as well as up
and you may get back less than you invested. Exchange rates will also cause the value of underlying investments to fall or rise. Tax concessions are not
guaranteed and may be changed at any time; their value will depend on your individual circumstances. For your protection when dealing, your call
may be recorded and monitored. Details of the nature of the investments, the commitment required and fund specific risk warnings are described in
the Simplified Prospectus document which is available on request. Large print documents are available on request from the above Guildford address.