The Premier Growth Portfolio invests in UK and overseas markets through both closed and open-ended investment companies and structured products. As with the Premier Balanced Portfolio, it may provide exposure to a range of asset classes such as property or commodities, but there will be a greater focus on potential capital appreciation and less emphasis on capital protection.
In order to build-in additional growth opportunities, the Portfolio may include a greater exposure to closed-ended funds as well as exposure to more volatile markets and individual investments that would be regarded as higher risk. Nevertheless, we seek to mitigate risk through diversification, using a range of asset and fund types.
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.