Premier Private Client Portfolio

Transcription

1 Premier Private Client Portfolio Available through Lighthouse Group LIGHTHOUSEGROUP

2 Whether seeking a steady income stream, strong long term capital growth or a combination of both, finding a portfolio that fulfils your investment needs with an acceptable level of risk has never been simpler. Premier Private Client Portfolio Available through Lighthouse Group

3 Premier Private Client Portfolio Available through Lighthouse Group The Premier Private Client Portfolio service, in partnership with Lighthouse Group, provides a choice of five growth portfolio and three income portfolio options which look to meet the varied investment requirements of a wide range of risk-minded investors, from the risk-averse seeking steady returns to the more adventurous investor comfortable with short term fluctuations for the prospect of greater longer term gains. Before making any investment decision, you should consult with an authorised financial adviser first. Your Lighthouse Group financial adviser will help you choose the portfolio that best fits your risk/reward profile. The growth and income portfolios are mainly made up of a variety of carefully chosen Premier funds, the combination of which will depend upon the portfolio s objective. The Premier funds within each portfolio could provide exposure to a wide range of assets such as cash, bonds, gilts, property, alternative style investment, UK and global equities. So, even though your portfolio might consist of just a few Premier funds, each fund itself could be invested in an extensive range of assets covering a variety of market sectors and geographic regions. Such diversification can be especially useful in periods of market turbulence as it means that your portfolio should not be overly exposed to one particular asset at any time, thereby helping to reduce the impact should a single market perform poorly. Premier funds, these underlying funds can be bought and sold as market conditions change without incurring any Capital Gains Tax (CGT) liability. Any gains made on the underlying holdings within the Premier funds are not subject to CGT when held within your portfolio, whereas a gain made in excess of the personal allowance on any investment held directly in your portfolio would be taxable. This is, therefore, a far more tax efficient way of giving you access to a wide range of funds managed by other investment houses. Of course, whatever the market conditions, the Premier Private Client Investment Committee is there to review each portfolio, changing the mix of Premier funds as appropriate, to ensure that the portfolios stay on track to meet their objectives and your expectations. Further information about the underlying funds held within each portfolio is available at, Depending on the mix of Premier funds within your portfolio, these underlying holdings will also include funds run by skilled managers from other respected investment companies. What s more, within the 1

4 Nuturing your wealth The investment world is complex and with thousands of choices available, you may be uncertain how to create a suitable portfolio using the right mix of investments. Even if you are confident in your choices, the work doesn t stop there. Over time, market conditions change, governments come and go, fund managers move between investment companies and a fund s strategy may alter; all of which could impact your portfolio. Without careful monitoring, your portfolio may not stay on track to give you the outcomes you expect. Holding a diversified portfolio of different assets and investments can be one of the most effective ways to manage investment risk, but keeping track of a large number of holdings from multiple providers requires considerable time and expertise to manage effectively. The Premier Private Client Portfolio Service has been designed to alleviate this burden. We create a portfolio of investments on your behalf, actively managed by experienced investment teams. In Brief Designed for investors with a minimum of 25,000, who recognise the value and importance of using the skills of specialist investment managers. Innovative portfolio management service using Premier funds for maximum tax and charges efficiency. Active day to day portfolio management. Emphasis on capital preservation for lower risk portfolios. Diversified portfolios providing exposure to a wide range of alternative style investments worldwide. Exposure to other funds managed by UK investment houses. An online valuation service to help you keep track of your portfolio. 2

5 Behind the scenes & understanding your needs Behind the scenes We take a collaborative approach to creating and managing our portfolios. Our Private Client Investment Committee, which includes our Director of Portfolio Management, Chief Investment Officer and Head of Risk, meet regularly with the aim of keeping the portfolios on track to produce good investment outcomes for our clients. This includes analysing portfolio performance, reviewing potential investment ideas, assessing potential risks on the horizon and discussing events in the wider economic and political landscape. Understanding your needs Your Lighthouse Group adviser will discuss your long term financial goals, attitude to risk, return expectations and produce a suitability report based on this information. Your adviser can then help you to select a portfolio which makes the best match. We believe that this team-based approach is key to delivering added value and peace of mind for our clients. From analysis of the overall asset allocation through to the choice of underlying investments, the team, with input from the fund managers of the individual Premier funds, will discuss any potential changes prior to implementing them. This means that key decisions are carefully considered from a number of different perspectives. Your portfolio is actively managed by a team of experienced individuals focused on managing assets using a proven investment process within a robust risk management framework. 3

6 The Five Growth Portfolios Premier Conservative Portfolio 4 The Premier Conservative Portfolio 4 aims to provide steady capital growth over the long term by investing across a broad range of asset classes. It takes the most conservative approach in providing capital growth compared to the other four portfolios and is likely to experience smaller fluctuations. To achieve steady capital growth, the portfolio will invest across a broad range of asset classes both in the UK and abroad, such as cash, gilts, bonds, property, UK and international equities. Rather than invest in securities directly, the portfolio will access various asset classes via open ended investment funds which can help in reducing stock specific risk. This may include the use of multi-asset funds to provide further diversification across different asset classes, investment types, funds and managers which we believe is highly beneficial for managing portfolio risk and achieving the desired outcomes. Typical Investor A typical investor will have a low to medium attitude to accepting risk, as assessed by their adviser. This strategy might appeal to an investor who is probably concerned about the possibility of losing money, but does not want to completely ignore the possibility of making returns potentially higher than those offered by bank accounts and other lower-risk investments. A typical investor is therefore prepared to accept some ups and downs. There is the potential for loss on the amount invested, particularly in the short term, so between 1 and 3 years. While a portfolio like this should go up and down in value less than a higherrisk portfolio,the value of investments can always go down as well as up. The Strategy The portfolio will mainly invest in a blend of Premier funds. The combination of funds will depend on the portfolio s objective and prevailing market conditions. The strategy pie chart is for illustrative purposes only and at any point in time, the actual funds held and amount invested may differ to the illustration. The current portfolio breakdown is available on the website. 40% Premier Liberation No.IV Fund 16% Premier Corporate Bond Monthly Income Fund 13.5% Premier Diversified Fund 7% Premier Pan European Property Share Fund 5% Premier Multi-Asset Conservative Growth Fund 5% Premier Monthly Income Fund 5% Premier UK Growth Fund 4.5% Premier Multi-Asset Growth & Income Fund 2% Premier Global Alpha Growth Fund 1% Premier Multi-Asset Global Growth Fund 1% Cash 4

7 The Five Growth Portfolios Premier Conservative Plus Portfolio 5 The Premier Conservative Plus Portfolio 5 aims to provide steady capital growth over the long term by investing across a broad range of asset classes. It aims to provide greater returns than the Conservative Portfolio 4 and may therefore have more exposure to investments that are considered higher risk. To achieve this aim, the portfolio will invest in a mix of different assets, which could include cash, bonds, property, UK and international equities. Rather than invest in securities directly, the portfolio will access the various underlying asset classes via open ended investment funds which can help in reducing stock specific risk. This may include the use of multi-asset funds to provide further diversification across different asset classes, investment types, funds and managers which we believe is highly beneficial for managing portfolio risk and achieving the desired outcomes. Typical Investor A typical investor will have a low to medium attitude to accepting risk, as assessed by their adviser. This strategy might appeal to an investor who would probably prefer an investment that has the potential to go up and down less and make more modest returns than risk losing money for the potential of higher returns. An investor in this strategy is therefore prepared to accept some falls in order to make higher returns than just investing in lowerrisk investments. There is the potential for loss on the amount invested, particularly in the short term, so between 1 and 3 years. While a portfolio like this should go up and down in value less than a higherrisk portfolio, the value of investments can always go down as well as up. The Strategy The portfolio will mainly invest in a blend of Premier funds. The combination of funds will depend on the portfolio s objective and prevailing market conditions. The strategy pie chart is for illustrative purposes only and at any point in time, the actual funds held and amount invested may differ to the illustration. The current portfolio breakdown is available on the website. 40% Premier Liberation No.V Fund 10% Premier Multi-Asset Global Growth Fund 9.5% Premier Corporate Bond Monthly Income Fund 9% Premier Diversified Fund 6% Premier Monthly Income Fund 6% Premier UK Growth Fund 5.5% Premier Pan European Property Share Fund 5% Premier Multi-Asset Conservative Growth Fund 5% Premier Multi-Asset Growth & Income Fund 3% Premier Global Alpha Growth Fund 1% Cash 5

8 The Five Growth Portfolios Premier Balanced Portfolio 6 The Premier Balanced Portfolio 6 aims to provide capital growth over the long term by investing across a broad range of asset classes, with exposure to UK and overseas equity markets which traditionally offer good long term returns for the investor. The Premier Balanced Portfolio 6 will primarily consist of investments that are likely to experience greater fluctuations, such as UK and international equities, while also having some exposure to more stable assets. Equity markets can offer the potential of enhanced returns over the longer term but are, by their nature, more sensitive to market movements. Rather than invest in securities directly, the portfolio will access various asset classes via open ended investment funds which can help in reducing stock specific risk. This may include the use of multi-asset funds to provide further diversification across different asset classes, investment types, funds and managers which we believe is highly beneficial for managing risk and achieving the desired outcomes. The portfolio will mainly invest in a blend of Premier funds. The combination of funds will depend on the portfolio s objective and prevailing market conditions. The strategy pie chart is for illustrative purposes only and at any point in time, the actual funds held and amount invested may differ to the illustration. The current portfolio breakdown is available on the website. Typical Investor A typical investor will have a medium to high attitude to risk, as assessed by their adviser. This strategy might appeal to an investor who would probably prefer an investment that has the potential to go up and down less and make more modest returns than risk losing money for very high returns. An investor in this strategy will be prepared to accept some falls in order to make higher returns than just investing in lower-risk investments. There is the potential for loss on the amount invested, particularly in the short term, so between 1 and 3 years. While a portfolio like this should rise and fall in value less than a higher-risk portfolio, the value of investments can always go down as well as up. The Strategy 40% Premier Liberation No.VI Fund 10% Premier UK Growth Fund 8% Premier Multi-Asset Global Growth Fund 8% Premier Multi-Asset Growth & Income Fund 6% Premier Diversified Fund 6% Premier Monthly Income Fund 6% Premier Pan European Property Share Fund 5% Premier Global Alpha Growth Fund 5% Premier Multi-Asset Conservative Growth Fund 5% Premier Corporate Bond Monthly Income Fund 1% Cash 6

9 The Five Growth Portfolios Premier Growth Portfolio 7 The Premier Growth Portfolio 7 aims to provide capital growth over the long term, with greater exposure to assets likely to generate higher returns than the Premier Balanced Portfolio 6, but which are also likely to fluctuate more. The portfolio will primarily consist of investments that are likely to experience greater fluctuations, such as UK and international equities, while also having a modest exposure to more stable assets. Equity markets traditionally offer good long term returns for the investor but are, by their nature, more sensitive to market movements. Typical Investor A typical investor will have a medium to high attitude to risk, as assessed by their adviser. This strategy might appeal to an investor who would probably concentrate on getting higher returns on their investments but is likely to still be concerned about too many rises and falls and the possibility of losing money. There is the potential for loss on the amount invested, particularly in the short term, so between 1 and 3 years. Rather than invest in securities directly, the portfolio will access the various underlying asset classes via open ended investment funds which can help in reducing stock specific risk. This may include the use of multi-asset funds to provide further diversification across different asset classes, investment types, funds and managers which we believe is highly beneficial for managing risk and achieving the desired outcomes. The portfolio will mainly invest in a blend of Premier funds. The combination of funds will depend on the portfolio s objective and prevailing market conditions. The strategy pie chart is for illustrative purposes only and at any point in time, the actual funds held and amount invested may differ to the illustration. The current portfolio breakdown is available on the website. The Strategy 60% Premier Liberation No.VII Fund 7.5% Premier Global Alpha Growth Fund 7% Premier UK Growth Fund 7% Premier Monthly Income Fund 6% Premier Multi-Asset Global Growth Fund 5% Premier Diversified Fund 3.5% Premier Multi-Asset Growth & Income Fund 3% Premier Pan European Property Share Fund 1% Cash 7

10 The Five Growth Portfolios Premier Growth Plus Portfolio 8 The Premier Growth Plus Portfolio 8 aims to provide capital growth over the long term mainly through UK and global equity investment. This portfolio seeks to produce the highest level of returns of the five portfolios and is therefore likely to invest in assets that are typically considered higher risk. The portfolio will usually be invested in investments that are likely to experience greater fluctuations, such as international equities, which could include significant positions in the Far East and emerging markets for example. Equity markets traditionally offer good long term returns for the investor but are, by their nature, more sensitive to market movements. Typical Investor A typical investor will have a high attitude to risk, as assessed by their adviser. This strategy might appeal to an investor who would probably concentrate on getting higher returns on their investments but is still likely to be concerned about too many rises and falls and the possibility of losing money. There is the potential for loss on the amount invested, particularly in the short term, so between 1 and 3 years. The Strategy Rather than invest in securities directly, the portfolio will access the various underlying asset classes via open ended investment funds which can help in reducing stock specific risk. This may include the use of multi-asset funds to provide further diversification across different asset classes, investment types, funds and managers which we believe is highly beneficial for managing risk and achieving the desired outcomes. 60% Premier Liberation No.VIII Fund 11.5% Premier Multi-Asset Global Growth Fund 6% Premier Multi-Asset Growth & Income Fund 6% Premier Global Alpha Growth Fund 6% Premier Monthly Income Fund 6% Premier UK Growth Fund 3.5% Premier Pan European Property Share Fund 1% Cash The portfolio will mainly invest in a blend of Premier funds. The combination of funds will depend on the portfolio s objective and prevailing market conditions. The strategy pie chart is for illustrative purposes only and at any point in time, the actual funds held and amount invested may differ to the illustrations. The current portfolio breakdown is available on the website. 8

11 The Three Income Portfolios Premier High Income Portfolio Premier offers a choice of three income portfolios; the Premier High Income Portfolio, Premier Income Portfolio and the Premier Income & Growth Portfolio. The Premier High Income Portfolio aims to produce an income level that is the highest of the three portfolios and is also expected to experience higher levels of fluctuation. The portfolio mainly invests in one or more Premier funds. These funds create a diversified portfolio, providing exposure to UK and international equities, fixed income assets and other types of investments that have the potential to generate high levels of income. Typical Investor The portfolio is designed for investors whose main priority is to receive a higher, regular income and for whom capital growth is of secondary importance. There is the potential for loss on the amount invested, particularly in the short term, so between 1 and 3 years. The Strategy The amount of income generated will depend upon a number of factors, including current market conditions and performance of the funds held within the portfolio. The amount of income you can expect to receive is not guaranteed and will fluctuate. 89% Premier Multi-Asset Monthly Income Fund 10% Premier Global Utilities Income Fund 1% Cash The latest historic portfolio yield is published on the portfolio factsheet, which is updated quarterly, and available on the website. The combination of funds held within the portfolio will depend upon the portfolio s objective and the prevailing market conditions. The strategy pie chart is for illustrative purposes only and at any point in time, the actual funds held and amount invested may differ to the illustration. The current portfolio breakdown is available on the website. 9

12 The Three Income Portfolios Premier Income Portfolio Premier offers a choice of three income portfolios; the Premier Income Portfolio, the Premier High Income Portfolio and the Premier Income & Growth Portfolio. This Portfolio sits midway between the other two income portfolios in terms of expected income and fluctuation levels. The portfolio will mainly invest in one or more Premier funds. These funds create a diversified portfolio, providing exposure to UK and international equities, fixed income assets, alternative assets and other types of investments across a variety of asset classes, designed to produce an income with the potential for capital growth. Typical Investor This portfolio might appeal to investors seeking an attractive level of income but for whom capital growth is of less importance. There is the potential for loss on the amount invested, particularly in the short term, so between 1 and 3 years. The Strategy The amount of income generated will depend upon a number of factors, including current market conditions and performance of the funds held within the portfolio. The amount of income you can expect to receive is not guaranteed and will fluctuate. 65% Premier Multi-Asset Monthly Income Fund 24% Premier Multi-Asset Conservative Growth Fund 10% Premier Global Utilities Income Fund 1% Cash The latest historic portfolio yield is published on the portfolio factsheet, which is updated quarterly, and available on the website. The combination of funds held within the portfolio will depend upon the portfolio s objective and the prevailing market conditions. The strategy pie chart is for illustrative purposes only and at any point in time, the actual funds held and amount invested may differ to the illustration. The current portfolio breakdown is available on the website. 10

13 The Three Income Portfolios Premier Income & Growth Portfolio Premier offers a choice of three income portfolios; the Premier Income & Growth Portfolio, the Premier High Income Portfolio and the Premier Income Portfolio. This portfolio is designed to produce the lowest level of income and experience less fluctuation than the other two portfolios. The portfolio mainly invests in one or more Premier funds. These funds create a diversified portfolio, providing exposure to UK and international equities, fixed income assets and other types of investments that have the potential to generate high levels of income. Typical Investor The portfolio is designed for a more conservative investor whose main priority is to receive a regular income and for whom capital preservation and steady growth are equally important. There is the potential for loss on the amount invested, particularly in the short term, so between 1 and 3 years. The Strategy The amount of income generated will depend upon a number of factors, including current market conditions and performance of the funds held within the portfolio. The amount of income you can expect to receive is not guaranteed and will fluctuate. The latest historic portfolio yield is published on the portfolio factsheet, which is updated quarterly, and available on the website. 49% Premier Multi-Asset Conservative Growth Fund 40% Premier Multi-Asset Monthly Income Fund 10% Premier Global Utilities Income Fund 1% Cash The combination of funds held within the portfolio will depend upon the portfolio s objective and the prevailing market conditions. The strategy pie chart is for illustrative purposes only and at any point in time, the actual funds held and amount invested may differ to the illustration. The current portfolio breakdown is available on the website. 11

14 Charges When you invest into a fund or portfolio management service, there are usually various charges that you need to pay to cover the costs of managing and administering your investments. Your Financial Adviser s Fee At the outset, your Lighthouse financial adviser will agree a fee with you for their advisory services, and how it will be paid. Premier s annual management fee Premier s annual management fee for managing your portfolio is 0.75%p.a. Our fees are typically taken from the annual management charge (AMC) that applies to the Premier funds held in each portfolio and which are therefore not directly payable by investors. For underlying funds which have an AMC of less than 0.75% p.a, we may take the balance from your portfolio, and where we do, this amount will be subject to VAT. This is because fees charged to any open ended fund (such as the Premier funds) are currently exempt from VAT, whereas normally charges on a portfolio management service would carry VAT. The annual management fees for the Premier funds are published on the Premier website. In the event that any external assets or funds are held within the portfolios, the fee will be taken from your portfolio and will also be subject to VAT. 12

15 Managing Risk Any type of investment includes risk. Even putting your money into a high street cash account, generally considered the safest form of investment, carries its own risks namely that inflation could erode the value, or spending power, of your money over time. And it s important to remember that your perception of what is an acceptable level of risk will inevitably differ from another person s. In this context, we would define investment risk as the potential for loss on your original investment. We would typically expect investments that are perceived as lower risk to offer less potential for loss, together with lower potential returns compared with riskier investments. We would typically expect higher risk investments to generate higher returns to compensate for the extra risk of potential loss to your investment. However, there are no guarantees as to how a type of asset, sector or region will perform in the future. We would expect a portfolio designed for the more adventurous investor to experience more significant levels of volatility. Volatility is simply the frequency and severity with which the price of an investment can go up and down. To compensate for greater fluctuations to your capital, you would generally expect to be rewarded with the potential of higher returns. Naturally, for portfolios which have lower levels of volatility, you would generally expect to receive lower returns. The greater the level of risk to your capital that you are willing to accept, the higher the potential returns. If you are unsure about any of the information in this guide, please consult your Lighthouse Group adviser, or contact Premier on This document should be read in conjunction with the Premier Private Client Portfolio Terms and Conditions. Whilst the risk of loss to your original capital cannot be completely removed, the Private Client Investment Committee look to manage the levels of risk in line with each portfolio s objective and risk profile. They aim to achieve this by investing in a selection of Premier funds. The mix of funds held in each portfolio will vary depending on the portfolio s objectives and risk profile, strategy and the prevailing market conditions. The team will adjust the weighting to each fund to ensure that each portfolio stays on track to meet its objectives. Between them, the Premier funds provide exposure to a diverse mix of different assets, sectors and geographic regions worldwide. Diversification is key to spreading risk, ensuring that your money is never overly exposed to one type of asset or sector, as well as helping to achieve consistent returns by smoothing out the performance ups and downs of individual stocks. 13

16 General Risk Points As with all types of investment, there is a risk to your original capital. It is important that you understand all the risks outlined in the Premier Private Client Portfolio Terms & Conditions and take advice from your financial adviser if you are unsure in any way. Below are some of the important risks that you should bear in mind: Past performance is never a guide to future returns and there is always a risk that you could lose some, or all, of your original investment. Whilst a diversified portfolio can help to spread investment risk, extreme circumstances, such as these experienced in recent years, could result in all asset classes experiencing a sharp fall at the same time. The degree of the investment risk depends on the risk profile of the portfolio. Portfolios aiming for a relatively high performance can incur greater risk than those adopting a more standard investment approach. Tax concessions are not guaranteed and may change at any time; their value to you depends on your tax situation. The price of shares and the income from them can go down as well as up so you could get back less than you invest. There is no guarantee that the objective of a portfolio will be achieved. There could be a variation in the performance between portfolios with similar objectives due to the different assets selected. If you withdraw part of your investment, or take an income greater than the income or growth of your investment, there is a risk that you may get back less than you originally invested. The amount of income generated by the income portfolios will depend upon a number of factors, including current market conditions and performance of the funds held within the portfolio. The amount of income you can expect to receive is not guaranteed and will fluctuate. 14

17 About Us Premier Asset Management Premier is an independent asset management company, managing client portfolios for over 2o years. Premier has established expertise in multi-asset, UK equities, global equities and fixed interest investing which we offer through our range of retail funds, closed-ended investment companies and our private client portfolio service. Our investment solutions offer our clients the building blocks to meet their different needs and objectives: for example, income, growth or a balance between the two; different risk profiles; and absolute return funds which aim to deliver a positive return over a specific time period, regardless of stock market performance. We aim to deliver solution-driven investments that meet or exceed our clients expectations through relevant products and with open communication. To achieve this, we give our investment professionals the appropriate freedom to perform, in a collaborative, high performance environment supported by a strong risk management and compliance culture. Lighthouse Group Lighthouse Group is an AIM-listed company which provides financial advice to personal and corporate clients through over 600 advisers located throughout the UK. As a Financial Adviser, Lighthouse Group specialises in providing a complete range of financial advice for all of its clients, including complex investment advice and wealth management solutions. In order to ensure that clients investment needs and risk appetite are maintained throughout the life of any investment, Lighthouse Group has developed an investment process utilising risk-graded portfolios. The portfolios are diversified and professionally managed by outsourced specialist investment management companies and discretionary fund managers such as Premier Asset Management. LIGHTHOUSEGROUP 15

18 More Details More details If you are interested in investing into the Premier Private Client Portfolio, please talk to your Lighthouse adviser in the first instance, who will be able to assess which of the portfolios currently available is most appropriate for you. Then, after reading the Terms and Conditions and consulting with your adviser if you are unsure in any way, simply complete the application form and return it to Premier s head office address. Minimum investment: 25,000 per portfolio Natural income from Growth Portfolios Fixed Income Minimum additional investment: 10,000 Income can be reinvested OR distributed quarterly on or before 20 January, 20 April, 20 July & 20 October Please note that the income payments may fluctuate each quarter and are not guaranteed. Minimum fixed regular withdrawal amount: 250 Frequency: quarterly on or before 20 January, 20 April, 20 July & 20 October Minimum ad-hoc withdrawal amount: 1,000 Natural income from Income Portfolios Valuations: twice a year, online valuation service available Frequency: Monthly on or before 20th of the month OR quarterly on or before 20 January, 20 April, 20 July & 20 October Tax information: annual tax packs for general investment accounts Where income is paid monthly, your first payment will be received on or before the 20th of the second month after you invest. This payment may be less than the ongoing payment (due to equalisation). Please note that the income payments may fluctuate each month/quarter and are not guaranteed. 16

19 Glossary Alternative assets These are types of non-traditional investments, which could include hedge funds and commodities for example and which are designed to help diversify a portfolio as they tend not to move in the same direction as the stockmarket. Bonds Issued by companies or governments and similar to a loan in nature, usually paying a fixed or variable interest rate. Capital growth The increase in the value of your original investment. Diversification This is a term used to describe spreading risk when you invest. This can be achieved by investing in a range of asset classes, geographical regions or industry sectors. Equities Another name for shares in a company. Fixed income Simply refers to any type of investment that generates a fixed regular return, such as bonds and gilts. Gilt A bond issued by the UK government. Multi-asset A fund which invests across a combination of different asset classes, such as property, equities, cash and bonds, with the aim of increasing diversification and reducing risk relative to holding one type of asset. NISA A New Individual Savings Account. This is a type of tax free scheme, set up by the government, designed to help people make the most of their savings and investments. All income and gains from a NISA investment are exempt from UK income tax and Capital Gains Tax. HM Revenue and Customs sets the maximum amounts that you are allowed to invest into a NISA each tax year. OEIC An Open Ended Investment Company this is similar to a unit trust. Investors pool their money together to invest in a range of different assets such as bonds, equities, property, cash etc. Each OEIC will have an investment objective, stated in a prospectus document, which could be to produce long term growth or generate a regular income. Structured investments This type of investment is generally designed to combine the potential upside of market performance whilst providing some protection against falls in the market. Structured investments are typically linked to the performance of one or more underlying assets such as market prices, indices, securities, commodities and other financial instruments. Volatility The frequency and severity with which the value of an investment goes up and down. Yield The amount of income paid or expected to be paid from each share held. The yield is calculated and quoted as a percentage. 17

20 The Next Step If you would like any further information about the portfolio options mentioned in this brochure, please contact your Lighthouse Group adviser, in the first instance. We understand that the investment decision that you are making should not be taken lightly or without due consideration. Although we are unable to advise on the suitability of a portfolio for individual clients, if you would like to find out more about Premier, please do contact us and we will be more than happy to help. Contact Us Write: Premier Asset Management Eastgate Court High Street Guildford Surrey GU1 3DE Tel: Website: investorservices@premierfunds.co.uk Issued by Premier Asset Management. Premier Asset Management is the marketing group for Premier Fund Managers Ltd and Premier Portfolio Managers Ltd, who are authorised and regulated by the Financial Conduct Authority of 25 The North Colonnade, Canary Wharf, London E14 5HS / August 2015.