Funds

Premier Diversified Income Fund

General risks

All types of investment carry a degree of risk and it is important that you understand and are comfortable with the level of risk to which your capital could be exposed. We would recommend that you consult with a financial adviser if unsure in any way.

There is the potential for loss of your original investment. The degree of investment risk will depend on the fund's risk profile. We would typically expect investments that are perceived as lower risk to offer less potential for loss but with potentially lower returns, whereas we would expect higher risk investments to generate higher returns albeit with the extra risk of potential loss. However, there are no guarantees as to how a type of asset, sector or region will perform in the future.

Inflation could erode the value of returns from your investment.

There is a risk that the entire market of an asset will fall, affecting the value of assets and the return on your investment.

There is no guarantee that the investment objective of the fund will be achieved.

Past performance is not a guide to future returns. The price of shares and any income from them can go down as well as up and there is the possibility of a loss to your original investment.

The levels of taxation and of relief from taxation will depend upon individual circumstances.

There may be a variation in the performance between funds with similar objectives due to the different assets selected. Performance of a fund will be affected by the fund manager's investment decisions.

If you withdraw part of your investment, or take an income greater than the natural income from, or growth of, your investment, there is a risk that you could get back less than you originally invested.


Other risks

The fund may invest directly into, or be exposed to via its underlying investments, a variety of assets, sectors or regions, all of which carry specific risks which could impact returns. The main risks are summarised on this document, with further detail available in the fund's prospectus.

Alternative Investments: These are types of non-traditional investments. The underlying assets may be wide ranging and include traditional asset classes such as bonds, equities, private equity and currencies or be more diverse comprising asset classes such as commodities, infrastructure, litigation financing and asset backed securities. Such investments may be hedged or have short exposure, so benefitting if asset prices fall. Such investments help to diversify portfolios and are expected to be lowly correlated with traditional investments but can display volatile returns in certain conditions.

Credit: If the issuer of a security held within the fund is unable to make income payments or repay its debt.

Currency: Where investments are denominated in currencies other than sterling, changes in exchange rates may cause their value to rise or fall.

Derivatives: This is a financial contract whose value is related to the value of an underlying asset or index, often used with the aim to manage risk or enhance returns, and whilst their use is not necessarily expected to increase risk within a fund, they could expose the fund to higher levels of volatility from time to time.

Emerging market: Some overseas markets typically carry higher risk than more established and developed overseas and domestic markets.

Equities: As an asset class, equities can experience higher levels of fluctuation than bonds or money market securities.

Fixed interest securities: This type of asset, which includes bonds and gilts, is particularly affected by movements in interest rates. If interest rates rise, their price may fall, and vice versa.

Legal/tax: Arising from a change in legal/tax regulations or the application of them.

Liquidity: During difficult market conditions, some securities or larger holdings may become more difficult to sell quickly at a desired price.

Market: The risk of a fall in price of a particular asset type.

Operational: Occasionally processes fail. This is more likely to happen with more complex products or investments in overseas markets, such as emerging market countries, which may not have the same level of safekeeping, infrastructure or controls as more developed markets.

Property Investment Company Shares: The volatility of these shares can be relatively high when compared to investing in physical property. Property as an asset class tends to experience cyclicality which can increase the volatility of returns.

 

Risk and other important information

When you invest, your money is at risk because the value of investments, and any income from them, can go down as well as up and you could get back less than you invested. The past performance of an investment is not a guide to how it will perform in the future. Because there are many different types of investment risk and investors have different attitudes to risk, we are not able to categorise our investments as having a specific level of risk. We would therefore strongly recommend that if you do not have professional experience in matters relating to investments, you should speak with a financial adviser before making an investment decision.

Premier Asset Management is not authorised to provide investment advice or tax advice. Before making an investment decision, it is also important that you read the key documentation for that investment which is available in the literature section of the website, by contacting a financial adviser or by getting in touch with us directly. See ‘Contact us’ for more information or if you are unsure. You can find more details about the specific risks and literature that are relevant to each type of investment on the individual fund, portfolio or investment trust website pages.

THE PREMIER MULTI-ASSET RANGE: INCOME, GROWTH, CONSERVATIVE GROWTH AND BALANCED SOLUTIONS.

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