The Premier Conservative Portfolio takes a balanced approach to investment by investing across a broad range of asset classes and by ensuring that a considerable element of the portfolio is held, where possible, in protected structured products and absolute return strategies.
Capital protected structured products, whether fully or partially protected, can provide opportunities for an investor to participate in equity market returns (often enhanced returns) without the same level of risk normally associated with a conventional equity investment.
Absolute return strategies look to generate positive returns in all market conditions and can help to reduce the volatility of a portfolio. Premier uses Funds of Hedge Funds in this area to further diversify the exposure of this element of the portfolio.
In addition, the Premier Conservative Portfolio may include some exposure to commodities and commercial property, as well as traditional equity collective investments covering both the UK and overseas markets.
A significant proportion of the portfolio is currently invested in structured products as illustrated in the ‘typical asset allocation’ pie-chart above. Structured products are generally derivative-based products used to combine the potential upside of market performance whilst limiting the downside. They are typically linked to the performance of one or more underlying instruments or assets, such as options or indices, that may introduce significant risk, including counterparty risk, which could affect the portfolio’s performance. However, the portfolio manager will use structured products to help keep the portfolio’s volatility levels relatively low. More information about structured products and their risks can be found in the brochure.
Important: Investors need to refer to the Risk Warnings in the brochure and those contained in the Premier Portfolio Management Service Terms and Conditions when considering their choice of portfolio.