The Managed Portfolio Service has been designed to provide investors with an efficient and effective way to invest in Structured Products.
The service has been developed as an alternative to 'Plans' for investors that want a core exposure to structured products. This Service offers a simpler and better way to invest into structured products, without the time and effort required to select individual products.
Offering three Model Portfolios through the Service; Cautious Return, Cautious Income and Balanced Growth. The Model Portfolios are managed on a discretionary basis by James Brearley and Sons, the Investment Manager, and will invest exclusively in Structured Products.
You must download and read the Managed Portfolio Brochure for a full description of all the benefits and risks involved, prior to proceeding with your investment.Managed Portfolio Service Brochure
It is important that you understand the risks that you are taking by investing in the Model Portfolios and the returns that you may receive. Each of the Model Portfolios is designed to match different risk categories that we have defined. We have called the two risk categories Cautious and Balanced. The three Model Portfolios we offer correspond to the two risk categories as follows:
Cautious Risk Category: Cautious Return and Cautious Income Portfolios
Balanced Risk Category: Balanced Growth Portfolio
Each Model Portfolio aims to generate a positive return over the medium term, but this is not guaranteed, and the returns may be positive or negative depending on market conditions.
To help you determine which Model Portfolio is appropriate for your attitude to risk Cube illustrate the sort of return that you may expect to get in three different market scenarios:
The Normal Scenario is the average Expected Annual Return based on all of the simulations in the stress test. Cube test each Structured Product millions of times to see how they may perform under a range of different market conditions. This will include periods when markets have increased, have fallen or been stable.
The Negative Scenario is the Expected Annual Return from the worst 10% of all of the simulated Investment periods.
The Positive Scenario is the Expected Annual Return where every Investment generates a positive return over the simulated investment periods.
Investors need to be aware that as with any investment there are risks that they should be aware of. This section describes some of the main risks that investors in the Service will be subject to and how the Investment Manager will try and manage these. The Managed Portfolio Service is only suitable for investors who are willing to take certain risks and can absorb a partial or complete loss of their Investment Amount. Potential investors are urged to consult with their financial investment, accounting, tax and other advisors with regard to any proposed or actual investment in the Service. Investing in Structured Products entails certain risks including, but not limited to, the following:
The value of each Structured Product will be exposed to a range of variables including:
These risks can at times compound each other. If there is a large fall in the Underlying Assets, Volatility tends to increase, and the chance of any Issuer becoming insolvent may also increase. These factors will all combine to reduce the value of the Structured Products held in your Portfolio.
You are committing to investing in a discretionary managed Model Portfolio. Each Model Portfolio is designed and managed to achieve a specific investment return objective within a risk limit. You should consider this as a medium to long-term investment, however, it is possible to make a partial or full encashment of your Portfolio at any time.
Following acceptance of your Application Form you will be sent correspondence from the Administrator and Custodian providing you with a Cancellation Notice. If you decide you wish to cancel the Service, you should notify the Administrator and Custodian in writing within a 14 day period. Whilst you will not be charged the Management Fee for this period, the sale of any Structured Products purchased within your Portfolio may result in a loss of capital. Please refer to the Investor Agreement for more information.
The correspondence referred to earlier will also include details of your access rights to the Investment Manager’s Online Valuation Service. This facility provides you with the ability to monitor the progress of your Portfolio on a 24/7 basis. You will be provided with a Confirmation Note for each transaction undertaken by the Investment Manager on your behalf. A valuation report, to include a performance statement, will be issued as at the end of January and July each year. You will also receive an Annual Nominee Report which, amongst other things will include a valuation of your Portfolio as at 5th April, a consolidated tax certificate and a capital gains report.
It is strongly recommended that you take financial advice from your Financial Adviser before investing into a Model Portfolio. If you do take advice, your adviser will assess the suitability of the Service in relation to your individual circumstances and most likely recommend the Model Portfolio which is most appropriate for these. However, you can invest directly without taking financial advice. Under these circumstances, it will be down to your own judgement as to whether the Service is suitable for you and which of the Model Portfolios is the most appropriate for you.
This is a matter for you to discuss with your Financial Adviser. Any fee paid to a Financial Adviser in relation to the service they provide must be authorised by you. The Administrator and Custodian will facilitate the payment of the authorised fee on your behalf from your Subscription. For example, if you subscribe £50,000 and have agreed to pay 0.3% (or £150) to your Financial Adviser as an initial fee, the Administrator and Custodian will deduct £150 from the £50,000 and send that amount to your Financial Adviser. The remaining £49,850 will be invested in the Model Portfolio. If you also authorised an ongoing Adviser Fee of say 0.3% per annum this would be calculated based on the daily value of your Portfolio and applied on a quarterly basis.
The minimum investment is £10,000, there is no maximum. Your investment can be linked to more than one Model Portfolio, however the minimum Investment Amount in any one Model Portfolio is £10,000 per Investor.
If you invest via an ISA you can transfer an existing ISA and invest up to the prevailing ISA allowance for that tax year. You can transfer your entire existing ISA into the Service but again this is subject to the £10,000 minimum investment limit.
If you wish to top up your initial investment please contact the Administrator and Custodian directly.
Yes, you can request a full or partial encashment of your Portfolio at any time, the latter being conditional on retaining a minimum Portfolio value of £10,000.
If you die, the Service will terminate immediately. James Brearley & Sons will adhere to the instructions given by the administrators of your estate. The Investments may be sold or re-registered in the name of the beneficiaries. If there is a need for a probate valuation, a fee of £50 plus VAT will be payable. However, re-registration will incur a charge of £15 per Investment. Under current rules ISA held Investments will lose their ISA status.