Premier Portfolio Managers has added the cautious portfolio to its C-lect portfolio management service.
The C-lect portfolio service already offers the balanced portfolio for low-risk investment, the growth portfolio for medium risk and the enterprise portfolio for investors who want to take higher risks.
The cautious portfolio aims to provide a lower risk fund than the existing balanced portfolio. It invests in the Premier zero dividend preference fund, which then invests in the zero dividend preference shares of investment trusts managed by different fund management groups such as Jupiter and Gartmore.
Although the cautious portfolio aims for growth, investors can withdraw a tax-free monthly income of up to £7,500 a year by making use of their capital gains tax allowance. However, those who do this should be aware that they risk capital erosion if they withdraw more money than the growth that is being generated.
The cautious portfolio could attract clients with at least £20,000 to invest who are looking for a reasonable level of growth without putting their capital at risk. It could also suit investors who want to place some of their capital in a lower-risk fund, while dividing their remaining capital between the other funds in the C-lect range.
According to Standard & Poors, the Premier zero dividend preference fund is ranked 1 out of 33 funds based on £1,000 invested on a bid to bid basis with net income reinvested over one month to July 6, 2001.