Premier Private Client Portfolio

The Premier Capital Builder Portfolio

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Suitable for: Conservative investors looking for gradual growth with lower volatility.

The Premier Capital Builder Portfolio takes a defensive approach to building capital growth. Investments are made with the objective of obtaining greater potential returns than cash deposits but with a much lower level of risk than you would normally associate with investing in equity markets. In addition, selling stocks as part of normal portfolio activity is likely to realise capital gains. If you withdraw any capital from the portfolio, you can potentially offset these gains against your annual Capital Gains Tax (CGT) allowance and minimise your CGT liability (individual circumstances may vary).

The portfolio has a diverse asset allocation through investment in capital-return shares of closed end investment companies, synthetic zeros, open ended investment companies (OEICs) and unit trusts that invest predominantly in stable capital growth investments.

Synthetic zeros are simply a form of structured product which have a final capital return at a future date, whilst being exposed to minimal credit and equity market risk. The synthetic zeros held are usually linked to major well known indices, such as the FTSE 100 Index, but with much less risk than investing directly in the index itself.

Capital-return shares of closed end investment companies generally have the same return profile as synthetic zeros; a final capital return on a future date. This section of the portfolio often includes what we term ‘anchor stocks’ - these stocks are designed to achieve their final capital sum in all foreseeable market conditions with minimum volatility. Capital-return shares might include exposure to commercial property and private equity, as well as traditional UK and overseas equity markets.

Open ended investment companies (OEICs) and unit trusts are occasionally held to gain exposure to a broad range of capital growth investments such as those mentioned above whilst obtaining a diverse exposure to conservative capital growth investments.

IMPORTANT: Investors need to refer to the Risk Warnings in the Investment Guide and those contained in the Premier Portfolio Terms & Conditions when considering their choice of portfolio.