Brewin Portfolio Service

Transcription

1 Brewin Portfolio Service Welcome to a wealth of investment opportunities

2 02 Brewin Portfolio Service This is your opportunity to put some of the finest minds in wealth management to work for you. With an investment of as little as 10,000 you can access our award-winning investment team and tap into over two centuries of wealth management experience and expertise. Choose from our range of six model portfolios to find one that matches your own personal attitude to risk and return. And with fees at less than 1%, you ll benefit from minimum costs and maximum value. From a simple, painless application process, to a hassle-free on-line view of your investments - investing with Brewin Portfolio Service is quick, easy and accessible. T: E: customer.services@brewin.co.uk W: We are proud to partner with SEI to bring you this service. A world leader in investment technology, they provide the platform on which your investments are held and are the custodian of your assets. Through this valuable partnership, we are able to bring you this service at lower cost and higher quality. While the composition of each portfolio is suggested by us, we have chosen SEI Investments (Europe) to act as your custodian, to safeguard your investments and hold client money. Brewin Dolphin will retain regulatory responsibility for all other aspects of the services. Please refer to our Terms and Conditions for more information.

3 Brewin Portfolio Service 03 We know that everyone invests for different reasons, with different goals and with different appetites for risk and reward. From investing for your retirement to giving your children or grandchildren a head start in life if you have between 10,000 and 200,000 to invest and you re confident that rather than investment advice you need a cost-effective high value service, the Brewin Portfolio Service (BPS) could be for you. Combining the experience and expertise of Brewin Dolphin with the freedom to choose your portfolio, it s a simple case of identifying your own personal risk appetite to access a wide range of benefits: Access to the investment expertise and experience of a leading UK wealth manager Your investments will be selected by our award-winning research team and will join nearly 33bn of investments managed for almost 100,000 clients. The benefits of over two centuries of investment experience Investing with us means benefiting from all the investment expertise we ve gathered since our founding in Round the clock access via our investment app With our online investment platform it s easy to check on your money whenever and wherever you want. A cost-effective way to invest with an industry leader We want you to get as much benefit from your investments as possible. By offering six ready-made portfolios with a range of investment risk levels, we re able to offer you choice and a style to suit you at an attainable price. With fees at less than 1% per annum, our portfolios are designed to minimise costs. Balancing risk in an investment portfolio that s right for you Our six portfolios offer you the breadth to choose an investment opportunity that closely matches your goals, ambitions and attitudes to risk. And they allow us to deliver outstanding value at an accessible level. You can be sure that your money will be diversified across a wide selection of different investments that are reviewed monthly to ensure they continue to match your risk appetite. Quick and easy to apply and hassle-free to invest We think that intelligent investing should be simple and accessible. To start investing with the Brewin Portfolio Service, simply complete the four easy steps overleaf. To keep our service costeffective it comes without advice that means it s important to read the Terms and Conditions and to take the time to decide if this is the right investment for you.

4 04 Brewin Portfolio Service 1 Decide whether the Brewin Portfolio Service is for you: Review the points on page 7 Check you are happy with our charges Decide if you want to invest through an ISA and if you want an income

5 Brewin Portfolio Service Determine your appetite for risk (page 9) Review the portfolio associated with your selected risk profile (pages 14-19) Instruct us to proceed by completing your application online or using the paper application form

6 06 Brewin Portfolio Service How the Brewin Portfolio Service works Each of the portfolios is built using a mix of different types of investment, known as asset classes. These include cash, bonds and shares (each asset class is described in more detail on pages 14-19). The portfolios invest in these assets through funds known as collective investment schemes. The mix of assets influences the possible return you will receive and the amount of risk within each portfolio. On pages you ll find charts detailing each portfolio s allocation to the various asset classes. This example is for risk level 6. These allocations are rebalanced every month to ensure that each portfolio remains in line with the set risk profile. Example asset mix (risk level 6) 7.5% 5% Cash Equities 20% Fixed income Alternatives 67.5% You will also see a table that looks like the one below. This is a snapshot of the composition of the portfolio that we believe will give you the intended level of exposure to risk. Asset class Asset Weight Cash Cash 1.00% UK Fidelity Index UK Fund Inc GBP 22.00% Bonds BlackRock Corporate Bond Tracker Inc GBP 8.50% How is risk measured within each portfolio? The method we use for measuring risk is called the Brewin Risk Measure (this is explained in more detail on page 13). It is calculated according to an industry standard for risk estimation. By considering what has happened in the past, it aims to provide you with a reasonable indicator of what could happen in the future. How does rebalancing work? Each portfolio has a standard allocation (benchmark) that determines what the mix of assets and the regional exposures should be. Over time, these relative weightings will vary as each asset class and region could grow at a different rate. We therefore return the funds to the weighting determined by the benchmark once a month.

7 Brewin Portfolio Service 07 Is Brewin Portfolio Service right for you? Each portfolio we offer comes with a different level of risk. Generally the higher the potential returns you want to achieve, the greater the risk you will need to take. These risks are covered in detail on page 9 and you will need to select the risk level that is right for you. You should also consider the following before deciding whether to invest in the service: You should be comfortable taking some risk with your investment and be prepared for the value of your portfolio and/or any income you take from it to fluctuate. You should accept that you could get back less than the amount you invest You should be prepared to treat Brewin Portfolio Service as a long term investment. We recommend a minimum of five years, although you can sell your investment at any time should you need your money You should understand that income from the portfolio can fluctuate. It should not be relied upon to maintain your standard of living or to pay your regular household bills You shouldn t invest all your assets in the service. It is sensible to have an easily accessible emergency fund of at least three, preferably six, months expenses in a savings or other low-risk account before investing You should consider the level of any short-term debt you may have and whether or not you should pay this off before investing in the service You should also consider whether you have all your appropriate protections in place such as life assurance and income protection If you are unsure if this service is right for you then you should seek independent financial advice before proceeding.

8 08 Brewin Portfolio Service Our charges We make an annual charge of 0.7% of the value of your portfolio for each account. This fee will fluctuate in line with the change in the value of your accounts as illustrated by the tables below. This is subject to a minimum charge of 70 per year for General Investment Accounts and ISAs and 40 per year for Junior ISA Accounts. The charge is taken from the account in monthly instalments. The minimum investment level for a General Investment Account and an ISA is 10,000 at outset ( 1,000 lump sum or 100 per month for a Junior ISA). If your portfolio value falls below 10,000 ( 5,740 for a Junior ISA) the service fee will increase above the stated 0.7% because of the minimum fee. Our portfolios are invested in a range of underlying funds, all of which levy their own annual fund charge. These vary between 0.11% and 0.16% per annum and, when added to our service fee, this gives a total cost to you of between 0.81% and 0.86%. For example, if you invested 20,000 the total annual fee will be approximately 0.86% of the value of your portfolio or 172 pa in monetary terms. Please note the provision of the Brewin Portfolio Service is subject to our Terms and Conditions, enclosed with this brochure. General Investment Accounts & ISAs Portfolio value ( ) Annual charge ( ) (incl. any applicable VAT) 5, , , , , , , , , ,000 1,050 Junior ISA Accounts Portfolio value ( ) Annual charge ( ) (incl. any applicable VAT) , , , , , , , , , , Greater than 10,000 Same as General Investment Account

9 Brewin Portfolio Service risk spectrum Brewin Portfolio Service 09 Everyone views risk differently but we feel all investors can be categorised within one of the risk levels outlined below. To take advantage of Brewin Portfolio Service, you will need to decide which risk category applies best to you. However, we do not offer portfolios at the lower or the upper end of the risk spectrum our service is appropriate if you consider yourself as fitting into risk categories 3 to 8. The portfolios which correspond to these risk profiles are shown on pages Please use this information to help determine the level of risk you are comfortable taking. PORTFOLIO Risk level 3 Risk level 4 Risk level 5 Risk level 6 Risk level 7 Risk level 8 RISK CATEGORIES & DESCRIPTION No BPS portfolio available No (zero) Investment Risk You are completely averse to any investments that could put your capital at risk. You accept that, in light of inflation, this is highly likely to have the effect of eroding the purchasing power of your capital. This typically means that your money will be held in cash, building society accounts or national savings. No BPS portfolio available Extremely Low Investment Risk You are prepared to accept only a very limited risk of loss to your capital. As a result your investment portfolio is likely to be composed of interest bearing assets with limited potential for short or long-term growth. You accept that in light of inflation, this strategy may have the effect of eroding the purchasing power of your capital. This means that you will still typically invest in cash and national savings, but will also have some exposure to fixed income investments (in the form of UK Government securities gilts) and to equities (in the form of collective investment schemes). Very Low Investment Risk You are averse to risk and therefore not comfortable with significant investments in your portfolio which might put your capital at risk. Preservation of your capital is very important to you and you would like to maintain the real value of your investments against inflation. Your portfolio will typically have some exposure to equities and a proportionately higher exposure to fixed income investments, at least some of which will contain market exposure. Your portfolio is likely to have very low market volatility and is designed to reduce the chance of a loss to capital, which will substantially limit the potential for high returns. There is still some risk of not maintaining the purchasing power of your capital. Low Investment Risk You are not comfortable with having the majority of your portfolio in higher risk investments such as equities. Capital preservation is important to you and you would like to maintain the real value of your investments against inflation. Your portfolio is likely to be more evenly balanced between equities and fixed income investments. The equity selection is such that your portfolio is likely to have low market volatility and is designed to provide some capital preservation, while at the same time allowing for increased levels of returns. Low to Moderate Investment Risk You would like a significant proportion of your portfolio to be in higher risk investments and you are willing to accept a greater short-term potential for losses from your overall portfolio, in order to generate potentially higher long-term returns. Your portfolio may typically have a higher exposure to equities than fixed income investments and is likely to have low to moderate levels of market volatility. Moderate Investment Risk You are prepared to have the significant majority of your investments in equities in order to achieve higher returns at the expense of greater risk to your capital. Your portfolio will typically have a substantially higher weighting towards equities than fixed income investments and is likely to have moderate market volatility. Moderate to High Investment Risk You would like to have the opportunity for large scale returns and you are comfortable with having a larger proportion of your capital at risk, and accept the possibility of larger short-term losses, in order to achieve your long-term investment aims. Your portfolio will typically have a very high weighting towards equities and very low levels of fixed income investments. Your portfolio is likely to have moderate to high market volatility. High Investment Risk You would like to have the opportunity for high returns and you are prepared to accept the possibility of a significant loss of capital in order to achieve these greater potential returns. Your portfolio will typically be almost exclusively invested in equities. Your portfolio is likely to have high market volatility. No BPS portfolio available Very High Investment Risk You are willing to invest in higher risk and speculative investments to achieve high possible returns and accept the risk of losing all, or a substantial part, of your capital. Typically, this could include very high risk investments such as venture capital trusts, enterprise investment schemes, business property relief schemes and other specialist investments. No BPS portfolio available Extremely High Investment Risk You are prepared to make wholly speculative investments, fully aware of and accepting the possibility of losing all of your capital. This could typically be in the form of derivatives and contingent liability investments, which often include gearing which means you could lose more than your initial capital investment. You are totally insensitive to risk.

10 10 Brewin Portfolio Service

11 Brewin Portfolio Service 11 Your income options and investing in an ISA Once you have selected the level of risk that matches your needs, you should then consider whether you would like to receive an income from your portfolio and the use of your tax-efficient ISA allowance. Income You can choose to receive the income generated from your investments. We can make a payment to your nominated bank account on a monthly, quarterly, half-yearly or annual basis. Alternatively, if you have no immediate need for income, you can seek to maximise the growth within your portfolio by reinvesting any income generated. Regular withdrawals We can also arrange for you to have regular, scheduled withdrawals from your portfolio (this is not available for Junior ISAs). However, please note that if the regular withdrawals exceed the return generated by your portfolio, this will lead to capital erosion and may have a detrimental impact on the future capital value of your investment. Please see the Q&A section on pages for more details or speak to us on ISAs ISAs can be a very tax-efficient way to invest. You pay no income or capital gains tax on your returns and you don t even have to declare them on your tax return. If you haven t already utilised your allowances for the current tax year, you may want to consider putting the first part of your investment into the service within an ISA. Please note that your total ISA subscription in any tax year must not exceed the statutory limit. You can also transfer your existing ISAs to us (we cover this in the Q&A section on pages 23-24). Junior ISAs We also offer a Junior ISA for investments on behalf of children aged under 18. These offer the same tax benefits as standard ISAs and you can invest up to the current JISA allowance on behalf of a child (Child Trust Funds can also be transferred to our Junior ISA).

12 12 Brewin Portfolio Service How might an investment perform? We cannot say how your portfolio will perform over time, although there is the possibility you could lose some of your original investment. We can estimate the possible losses you may experience by looking at historical data. Although the past performance of financial markets is not a reliable guide to how a portfolio will perform in the future, it can provide a useful guide to help you understand how a portfolio might fare over the long term. On the pages that follow, you will see a graph for each portfolio that looks like the one below (this example is for risk level 6). This shows the historic performance of the asset mix over the last 15 years. In this example, you can see two significant drops in the value of the portfolio. The first fall took the portfolio value to below the initial amount invested of 100,000. However, the value of the portfolio then increased over time and was worth almost 194,000 over the full 15 year period. The information in these charts and tables will help you decide which risk category is the right one for you. Example historic 15 year performance The past performance of a mix of assets similar to a portfolio in risk level On the pages featuring each portfolio, you will also see a table which shows the biggest loss and the longest period it took the portfolio to recover over the last five and 10 years. The example shown below is for risk level 6 over the last five years. Portfolio Value ( 000s) months to recover the loss Largest Fall in Value 28% Example historic asset mix characteristics (Risk level 6) Average return per year 6.3% Gain over the period 84.6% Largest fall in value during the period 28.2% 0 Longest time to recover (months) Source: Brewin Dolphin Limited, Datastream as at 30 June Source: Brewin Dolphin Limited, Datastream from 31 December 1999 to 30 June How long should I invest for? The longer time horizon you have the better. This is particularly so if you choose a higher risk investment strategy. Investing over 10 years or more, for example, gives your portfolio more time to recover any losses which may have been caused by a period of market volatility. Investing on a shorter term view, such as less than five years, reduces the time available to recover any losses. If you choose a higher risk investment strategy for a relatively short time period, you will need to have a greater ability to withstand potential losses.

13 Brewin Portfolio Service 13 How do we measure risk? Before you choose one of the six portfolios shown on the following pages, it is important to understand how we measure risk in a portfolio of assets. We call this the Brewin Risk Measure. The Brewin Risk Measure Our risk measure is calculated according to an industry standard for risk estimation. By considering what has happened in the past, it aims to provide a reasonable indicator of what could happen in the future. While we expect the value of your investment to increase over the longer term, it is important that you understand your investment will be exposed to risk. Put simply, the Brewin Risk Measure is a way of giving you a feel for how much the value of your portfolio could fall over a single month. We consider the worst 1% of actual historic price movements for each of the asset classes in your portfolio and we assess the impact that these would have on your investment. For example, a Brewin Risk Measure of 12.5% would mean that over a period of investing for 10 years (c. 2,500 business days), there would be 25 days (1%) on which your portfolio could be expected to show a loss of 12.5% or more on the value one month before. The Brewin Risk Measure for each portfolio is shown on the pages that follow. The range for risk level 3 will be lower than for risk level 4 and so on. The example below is for Risk level 6 (Moderate Investment Risk). Example BRM range (risk level 6) BRM 10% 15% The BRM range for risk level 3 will be lower than for risk level 4 and so on.

14 14 Brewin Portfolio Service LOWER RISK HIGHER RISK RISK LEVEL 3 Very Low Investment Risk BRM 2.5% 7.5% You are averse to risk and therefore not comfortable with significant investments in your portfolio which might put your capital at risk. Preservation of your capital is very important to you and you would like to maintain the real value of your investments against inflation. Your portfolio will typically have some exposure to equities and a proportionately higher exposure to fixed income investments, at least some of which will contain market exposure. Your portfolio is likely to have very low market volatility and is designed to reduce the chance of a loss to capital, which will substantially limit the potential for high returns. There is still some risk of not maintaining the purchasing power of your capital. Asset mix Asset class Asset Weight* Cash Cash 1.00% 10% 10% Cash Vanguard U.K. Short-Term IG Bond Index Inc GBP % UK Fidelity Index UK Fund Inc GBP 3.00% UK HSBC FTSE 250 Index Fund 1.00% UK Vanguard FTSE U.K. Equity Income Index Fund Inc 11.00% North America Fidelity Index US Fund Inc GBP 5.69% 25% Dev'd Europe ex UK Vanguard FTSE Developed Europe ex UK Equity Index Fund Inc 1.63% GBP Japan Fidelity Index Japan Fund P Inc GBP 0.87% Asia Fidelity Index Pacific ex Japan Fund P Inc GBP 1.25% 55% Emerging Fidelity Index Emerging Markets Inc GBP 0.56% Bonds BlackRock Corporate Bond Tracker Inc GBP 8.50% Bonds L&G Global ex UK Inflation Bond Net Inc GBpH 5.00% Bonds Vanguard Global Bond Index Fund Inc % Bonds Vanguard U.K. Government Bond Index Fund Inc GBP 18.50% UK Commercial Property BlackRock Global Property Secs 3.50% Cash Other Alternatives Vanguard Global Short-Term Bond Index Fund Inc % Equities Key Investor Information Documents (KIIDs) are available online at Fixed income Alternatives Charges for this portfolio Annual fund charges 0.16% BPS fee 0.70% Total cost 0.86% 1. The funds annotated have a small one-off charge as detailed in the KIIDs which will marginally increase the total cost in the first year above the amount shown in this table. Historic asset mix characteristics for the last 5 years Average total return per year 6.8% Gain over the period 38.8% Largest fall in value during the period 3.4% Longest time to recover (months) 12 Performance for this asset mix over the last 15 years 15 years 10 years 5 years 250 Historic asset mix characteristics for the last 10 years Average return per year 5.7% Gain over the period 74.5% Largest fall in value during the period 13.8% Longest time to recover (months) Portfolio Value ( 000s) *Actual level will reflect benchmark composition at each rebalance date. For more information about our performance benchmarks, please refer to the section entitled Our Performance Benchmarks at the end of this document. Source: Brewin Dolphin Limited, Datastream from 30 June 1999 to 30 June Please note that past performance is not an indication of future performance.

15 Brewin Portfolio Service LOWER RISK HIGHER RISK RISK LEVEL 4 Low Investment Risk BRM 5% 10% You are not comfortable with having the majority of your portfolio in higher risk investments such as equities. Capital preservation is important to you and you would like to maintain the real value of your investments against inflation. Your portfolio is likely to be more evenly balanced between equities and fixed income investments. The equity selection is such that your portfolio is likely to have low market volatility and is designed to provide some capital preservation, while at the same time allowing for increased levels of returns. Asset mix Asset class Asset Weight* 7.5% 5% Cash Cash 1.00% Cash Vanguard U.K. Short-Term IG Bond Index Inc GBP % UK Fidelity Index UK Fund Inc GBP 7.00% UK HSBC FTSE 250 Index Fund 2.00% UK Vanguard FTSE U.K. Equity Income Index Fund Inc 16.00% North America Fidelity Index US Fund Inc GBP 9.96% 45% 42.5% Dev'd Europe ex UK Vanguard FTSE Developed Europe ex UK Equity Index Fund Inc 2.84% GBP Japan Fidelity Index Japan Fund P Inc GBP 1.52% Asia Fidelity Index Pacific ex Japan Fund P Inc GBP 2.20% Emerging Fidelity Index Emerging Markets Inc GBP 0.98% Bonds BlackRock Corporate Bond Tracker Inc GBP 11.00% Bonds L&G Global ex UK Inflation Bond Net Inc GBpH 4.00% Bonds Vanguard Global Bond Index Fund Inc % Bonds Vanguard U.K. Government Bond Index Fund Inc GBP 16.00% UK Commercial Property BlackRock Global Property Secs 2.50% Other Alternatives Vanguard Global Short-Term Bond Index Fund Inc % Cash Equities Key Investor Information Documents (KIIDs) are available online at Fixed income Alternatives Charges for this portfolio Annual fund charges 0.15% BPS fee 0.70% Total cost 0.85% 1. The funds annotated have a small one-off charge as detailed in the KIIDs which will marginally increase the total cost in the first year above the amount shown in this table. Historic asset mix characteristics for the last 5 years Average total return per year 7.3% Gain over the period 42.3% Largest fall in value during the period 5.0% Longest time to recover (months) 12 Performance for this asset mix over the last 15 years 15 years 10 years 5 years 250 Historic asset mix characteristics for the last 10 years Average return per year 6.2% Gain over the period 82.6% Largest fall in value during the period 19.6% Longest time to recover (months) 26 Portfolio Value ( 000s) *Actual level will reflect benchmark composition at each rebalance date For more information about our performance benchmarks, please refer to the section entitled Our Performance Benchmarks at the end of this document. Source: Brewin Dolphin Limited, Datastream from 30 June 1999 to 30 June Please note that past performance is not an indication of future performance.

16 16 Brewin Portfolio Service LOWER RISK HIGHER RISK RISK LEVEL 5 Low to Moderate Investment Risk BRM 7.5% 12.5% You would like a significant proportion of your portfolio to be in higher risk investments and you are willing to accept a greater short-term potential for losses from your overall portfolio, in order to generate potentially higher long-term returns. Your portfolio may typically have a higher exposure to equities than fixed income investments and is likely to have low to moderate levels of market volatility. Asset mix Asset class Asset Weight* Cash Cash 1.00% 7.5% 5% Cash Vanguard U.K. Short-Term IG Bond Index Inc GBP % UK Fidelity Index UK Fund Inc GBP 11.50% UK HSBC FTSE 250 Index Fund 3.00% UK Vanguard FTSE U.K. Equity Income Index Fund Inc 18.00% North America Fidelity Index US Fund Inc GBP 12.80% 32.5% Dev'd Europe ex UK Vanguard FTSE Developed Europe ex UK Equity Index Fund Inc 3.67% GBP Japan Fidelity Index Japan Fund P Inc GBP 1.95% 55% Asia Fidelity Index Pacific ex Japan Fund P Inc GBP 2.82% Emerging Fidelity Index Emerging Markets Inc GBP 1.26% Bonds BlackRock Corporate Bond Tracker Inc GBP 8.50% Bonds Vanguard Global Bond Index Fund Inc % Bonds Vanguard U.K. Government Bond Index Fund Inc GBP 11.00% UK Commercial Property BlackRock Global Property Secs 2.50% Other Alternatives Vanguard Global Short-Term Bond Index Fund Inc % Cash Equities Fixed income Alternatives Key Investor Information Documents (KIIDs) are available online at Charges for this portfolio Annual fund charges 0.15% BPS fee 0.70% Total cost 0.85% 1. The funds annotated have a small one-off charge as detailed in the KIIDs which will marginally increase the total cost in the first year above the amount shown in this table. Historic asset mix characteristics for the last 5 years Average total return per year 7.3% Gain over the period 42.4% Largest fall in value during the period 7.2% Performance for this asset mix over the last 15 years 15 years 10 years 5 years Longest time to recover (months) Historic asset mix characteristics for the last 10 years Average return per year 6.3% Gain over the period 83.9% Largest fall in value during the period 24.0% Longest time to recover (months) Portfolio Value ( 000s) *Actual level will reflect benchmark composition at each rebalance date. For more information about our performance benchmarks, please refer to the section entitled Our Performance Benchmarks at the end of this document. Source: Brewin Dolphin Limited, Datastream from 30 June 1999 to 30 June Please note that past performance is not an indication of future performance.

17 Brewin Portfolio Service LOWER RISK HIGHER RISK RISK LEVEL 6 Moderate Investment Risk BRM 10% 15% You are prepared to have the significant majority of your investments in equities in order to achieve higher returns at the expense of greater risk to your capital. Your portfolio will typically have a substantially higher weighting towards equities than fixed income investments and is likely to have moderate market volatility. Asset mix Asset class Asset Weight* 7.5% 5% Cash Cash 1.00% Cash Vanguard U.K. Short-Term IG Bond Index Inc GBP % UK Fidelity Index UK Fund Inc GBP 22.00% UK HSBC FTSE 250 Index Fund 4.00% 20% UK Vanguard FTSE U.K. Equity Income Index Fund Inc 14.00% North America Fidelity Index US Fund Inc GBP 15.65% Dev'd Europe ex UK Vanguard FTSE Developed Europe ex UK Equity Index Fund Inc 4.48% GBP Japan Fidelity Index Japan Fund P Inc GBP 2.38% Asia Fidelity Index Pacific ex Japan Fund P Inc GBP 3.45% 67.5% Emerging Fidelity Index Emerging Markets Inc GBP 1.54% Bonds BlackRock Corporate Bond Tracker Inc GBP 8.50% Bonds Vanguard Global Bond Index Fund Inc % Bonds Vanguard U.K. Government Bond Index Fund Inc GBP 4.00% UK Commercial Property BlackRock Global Property Secs 2.50% Other Alternatives Vanguard Global Short-Term Bond Index Fund Inc % Cash Equities Key Investor Information Documents (KIIDs) are available online at Fixed income Alternatives Charges for this portfolio Annual fund charges 0.13% BPS fee 0.70% Total cost 0.83% 1. The funds annotated have a small one-off charge as detailed in the KIIDs which will marginally increase the total cost in the first year above the amount shown in this table. Historic asset mix characteristics for the last 5 years Average total return per year 7.3% Gain over the period 42.4% Largest fall in value during the period 9.3% Performance for this asset mix over the last 15 years 15 years 10 years 5 years Longest time to recover (months) Historic asset mix characteristics for the last 10 years Average return per year 6.3% Gain over the period 84.6% Largest fall in value during the period 28.2% Longest time to recover (months) Portfolio Value ( 000s) *Actual level will reflect benchmark composition at each rebalance date. For more information about our performance benchmarks, please refer to the section entitled Our Performance Benchmarks at the end of this document. Source: Brewin Dolphin Limited, Datastream from 30 June 1999 to 30 June Please note that past performance is not an indication of future performance.

18 18 Brewin Portfolio Service LOWER RISK HIGHER RISK RISK LEVEL 7 Moderate to High Investment Risk BRM 12.5% 17.5% You would like to have the opportunity for large scale returns and you are comfortable with having a larger proportion of your capital at risk, and accept the possibility of larger short-term losses in order to achieve your long-term investment aims. Your portfolio will typically have a very high weighting towards equities and very low levels of fixed income investments. Your portfolio is likely to have moderate to high market volatility. Asset mix 5% 5% 7.5% 82.5% Asset class Asset Weight* Cash Cash 1.00% Cash Vanguard U.K. Short-Term IG Bond Index Inc GBP % UK Fidelity Index UK Fund Inc GBP 38.00% UK HSBC FTSE 250 Index Fund 5.00% UK Vanguard FTSE U.K. Equity Income Index Fund Inc 7.00% North America Fidelity Index US Fund Inc GBP 18.49% Dev'd Europe ex UK Vanguard FTSE Developed Europe ex UK Equity Index Fund Inc 5.29% GBP Japan Fidelity Index Japan Fund P Inc GBP 2.82% Asia Fidelity Index Pacific ex Japan Fund P Inc GBP 4.08% Emerging Fidelity Index Emerging Markets Inc GBP 1.82% Bonds BlackRock Corporate Bond Tracker Inc GBP 2.50% Bonds Vanguard Global Bond Index Fund Inc % UK Commercial Property BlackRock Global Property Secs 1.50% Other Alternatives Vanguard Global Short-Term Bond Index Fund Inc % Cash Equities Fixed income Alternatives Key Investor Information Documents (KIIDs) are available online at Charges for this portfolio Annual fund charges 0.11% BPS fee 0.70% Total cost 0.81% 1. The funds annotated have a small one-off charge as detailed in the KIIDs which will marginally increase the total cost in the first year above the amount shown in this table. Historic asset mix characteristics for the last 5 years Performance for this asset mix over the last 15 years Average total return per year 7.3% Gain over the period 42.5% Largest fall in value during the period 11.7% 15 years 10 years 5 years Longest time to recover (months) Historic asset mix characteristics for the last 10 years Average return per year 6.4% Gain over the period 85.8% Largest fall in value during the period 32.8% Longest time to recover (months) Portfolio Value ( 000s) *Actual level will reflect benchmark composition at each rebalance date. For more information about our performance benchmarks, please refer to the section entitled Our Performance Benchmarks at the end of this document. Source: Brewin Dolphin Limited, Datastream from 30 June 1999 to 30 June Please note that past performance is not an indication of future performance.

19 Brewin Portfolio Service LOWER RISK HIGHER RISK RISK LEVEL 8 High Investment Risk BRM 15% 20% You would like to have the opportunity for high returns and you are prepared to accept the possibility of a significant loss of capital in order to achieve these greater potential returns. Your portfolio will typically be almost exclusively invested in equities. Your portfolio is likely to have high market volatility. Asset mix 95% 5% Asset class Asset Weight* Cash Cash 1.00% Cash Vanguard U.K. Short-Term IG Bond Index Inc GBP % UK Fidelity Index UK Fund Inc GBP 40.50% UK HSBC FTSE 250 Index Fund 6.00% UK Vanguard FTSE U.K. Equity Income Index Fund Inc 11.00% North America Fidelity Index US Fund Inc GBP 21.34% Dev'd Europe ex UK Vanguard FTSE Developed Europe ex UK Equity Index Fund Inc 6.10% GBP Japan Fidelity Index Japan Fund P Inc GBP 3.25% Asia Fidelity Index Pacific ex Japan Fund P Inc GBP 4.70% Emerging Fidelity Index Emerging Markets Inc GBP 2.11% Key Investor Information Documents (KIIDs) are available online at Cash Equities Charges for this portfolio Annual fund charges 0.11% BPS fee 0.70% Total cost 0.81% 1. The funds annotated have a small one-off charge as detailed in the KIIDs which will marginally increase the total cost in the first year above the amount shown in this table. Historic asset mix characteristics for the last 5 years Average total return per year 7.5% Gain over the period 43.7% Largest fall in value during the period 13.5% Longest time to recover (months) 15 Performance for this asset mix over the last 15 years 15 years 10 years 5 years 250 Historic asset mix characteristics for the last 10 years Average return per year 6.5% Gain over the period 88.4% Largest fall in value during the period 36.1% Longest time to recover (months) Portfolio Value ( 000s) *Actual level will reflect benchmark composition at each rebalance date. For more information about our performance benchmarks, please refer to the section entitled Our Performance Benchmarks at the end of this document. Source: Brewin Dolphin Limited, Datastream from 30 June 1999 to 30 June Please note that past performance is not an indication of future performance.

20 20 Brewin Portfolio Service Investment risks Brewin Portfolio Service provides you with diversified exposure to a range of financial assets, all of which are subject to some form of investment risk. It is important that you understand that the level of return you can expect from an investment is related to the amount and type of risk for that investment. Below we outline some broad categories of investment risk that can impact upon the performance of our portfolios. Volatility risk Volatility is a measure of the relative rate at which the price of a particular investment moves up and down. If the price of an investment moves up and down rapidly over short time periods it can be described as having high volatility. If the price changes relatively infrequently, it can be described as having low volatility. Some investments are more volatile than others. Company shares (equities), for example, are generally more volatile than government bonds while cash investments are typically the least volatile. It is important to understand that there is a trade-off between the levels of volatility you are prepared to accept and the return you can expect to achieve from an investment. As a general rule the more volatile an asset is, the greater the potential there is for positive returns but also the potential for greater losses. Inflation risk Inflation erodes the purchasing power of your assets. In other words, it reduces how much your investments will be able to buy in the future. Of course, inflation risk can have an impact on all types of investment but some types are more at risk than others. Cash, for example, is among the asset classes most vulnerable to inflation risk. If the interest rate payable on a cash deposit in a bank or building society is consistently below the rate of inflation over time, then the real value of that cash is eroded. This is particularly relevant to the market conditions we have experienced over the last few years. Currency risk This risk relates to all investments denominated in a foreign currency, such as overseas company shares. These assets will generally be priced in the currency of the country of origin continental European company shares, for instance, will generally be priced in euros. If you are a UK investor, you will typically view your investments in sterling terms. You therefore need to be aware that the value of any foreign assets you own will depend not only on the price movements of the assets themselves but also on the movements of euros against sterling. This can mean that investments denominated in a foreign currency can be more volatile than those denominated in sterling.

21 Brewin Portfolio Service 21 Investment asset classes To help you assess our range of portfolios, we have described the asset classes in which they invest in more detail below. This should give you a better understanding of the level and type of risk each portfolio is likely to possess. Cash Cash has virtually no risk of capital loss but frequently provides a return that is below the prevailing rate of inflation. This means the real value of a cash investment can fall. Fixed income Fixed income investments, such as bonds, are a type of loan. When you purchase a bond you are effectively lending money to the issuer and you receive interest payments in return. There are various types of bond ranging from government bonds, where the risk tends to be very low, to corporate bonds where the risk is generally higher. As with most types of assets, investing in bonds carries a degree of risk. A generalisation would be that they sit somewhere between cash and shares in the risk spectrum (although some bonds are higher risk than others). The biggest risk factor tends to the creditworthiness of the issuer if the government or corporation who has issued the bond experiences financial difficulties, there is a possibility that you may not receive interest payments and your original capital may not be returned. Shares (equities) Most companies will pay a dividend to shareholders based upon their profits. The value of the shares typically reflects the value of these dividend payments and those anticipated in the future. Profits and dividends are not fixed but to some extent tend to rise with inflation. This means the value of the shares can increase over time, although this isn t guaranteed. Shares can therefore provide a means of protecting your wealth against the effects of inflation. Of course, shares can also decrease in value (quite substantially at times). This may be due to the company experiencing financial difficulties or because investors believe the prospects for the company are not that bright. For this reason, shares are typically more volatile than bonds. Alternative investments Commercial property An investment in commercial property entitles you to the rents paid by the tenants as well as the disposal proceeds should the property be sold. The value of property and the rental income it generates will be impacted by market demand. However, both the value of the property and the income should provide some insulation against the erosion of your wealth by inflation. Property is the least liquid asset class that our portfolios invest in. This means that in certain market conditions it may be difficult to sell holdings in property funds. Absolute return An investment in an Absolute Return Fund (also known as a hedge fund) provides you with exposure to a mixture of different investment strategies and securities. The aim is to deliver positive returns under a range of market conditions with reduced levels of volatility.

22 22 Brewin Portfolio Service Our performance benchmarks Each of the six portfolios has its own benchmark (a yardstick to measure the performance). These are constructed from a combination of market indices which represent the asset classes that make up each portfolio (shares, fixed income, alternatives and cash). For shares, for example, we use two indices the FTSE All Share for UK equities and the FTSE All World ex UK for overseas equities. The weighting of each index in the overall benchmark will depend on the asset mix for that particular portfolio. So, for instance, the asset mix for risk level 6 includes a 67.5% allocation to equities broken down into 40% in UK equities and 27.5% in overseas equities. This means that 67.5% of the benchmark will be made up of equity indices 40% in the FTSE All Share and 27.5% in the FTSE All World ex UK. The table below details the individual indices for each asset class and their weightings in the benchmark for each portfolio. Composition of benchmarks for each portfolio Asset mix Asset class Risk level 3 Risk level 4 Risk level 5 Risk level 6 Risk level 7 Risk level 8 Index Cash Cash 10.0% 5.0% 5.0% 5.0% 5.0% 5.0% 7 Day LIBOR Equities UK Equities 15.0% 25.0% 32.5% 40.0% 50.0% 57.5% FTSE All Share TR* Overseas Equities 10.0% 17.5% 22.5% 27.5% 32.5% 37.5% FTSE All World ex UK TR* Fixed Income UK Gilts 32.5% 27.5% 20.0% 12.5% 5.0% 0.0% FTSE Govt. All Stocks TR* Corporate Bonds 22.5% 17.5% 12.5% 7.5% 2.5% 0.0% iboxx UK Sterling Corporate 7-10 yrs TR* Alternatives Property 3.5% 2.5% 2.5% 2.5% 1.5% 0.0% IMA Property TR* Absolute Return 6.5% 5.0% 5.0% 5.0% 3.5% 0.0% IMA Targeted Absolute Return TR* *TR Total Return is the return an investor receives when income is reinvested. The range of alternative assets that can be used in client portfolios has changed over the years and prior to June 2005 the historic performance of the alternatives asset class was wholly based upon the property index. From June 2005, the historic performance of the alternatives asset class has been based upon both the property and target absolute return indices. This change represents the broader range of alternative investment options that have become available to investors over time.

23 Brewin Portfolio Service 23 Your questions answered Who is the Brewin Portfolio Service designed for and how does it work? It s a service designed for people with between 10,000 and 200,000 to invest and who can pick an appropriate portfolio made up of several funds without the need for financial advice. It s a cost-effective way to maintain a diversified portfolio of funds (Unit Trusts and OEICs). Funds typically invest in a range of individual bonds and shares to help increase diversification. There are six portfolios available within the service, each aligned to a risk category. You select a portfolio based on your risk preference and your long-term goals. Your portfolio is rebalanced by us each month, in order to maintain your selected exposure to risk. What are the costs? Our annual fee will be 0.7% of the value of your portfolio per year, charged monthly and taken from your account on the first business day of each month. The minimum fee is 5.83 per month ( 3.33 for a Junior ISA). This fee will fluctuate in line with changes in the value of your portfolio and will go up should the value of your portfolio increase. Each underlying fund within the portfolios also has its own charge and other charges may also apply under different circumstances (for full information please refer to Brewin Portfolio Service Fees & Charges page in Our Agreement with you ). VAT will be charged in line with applicable legislation. Can I top up my account? Yes, you can add money to your account on a regular or one-off basis by cheque, electronic transfer, online debit card payment or direct debit. Funds added to your account will be invested on the next business day following receipt (five working days if payment is by cheque). Can I use my ISA allowance within the Brewin Portfolio Service? Yes, you can invest within a Stocks and Shares ISA up to the annual limit. You can also transfer any existing ISAs you have into the service. Your existing ISA manager may charge you for this and will also have to sell your holdings and make the transfer to us in cash, so there may be a period of time when you are not invested in the market. For further help on opening or transferring an ISA, please go online or contact us on Can I use my child s Junior ISA allowance within Brewin Portfolio Service? Yes, you can invest within a Stocks and Shares Junior ISA up to the annual limit. Can I be paid an income? Yes, income can be paid out in full or reinvested in your chosen portfolio. Alternatively a regular fixed amount can be paid into your nominated bank account. Please note if the amounts withdrawn exceed your portfolio s return, the capital value can be eroded. What happens to my money before it is invested? All money is held on deposit within your account and attracts a nominal rate of interest for the period it remains in cash.

24 24 Brewin Portfolio Service Can I make withdrawals at any time? Yes, cash withdrawals can be requested at any time without charge through the online service You can also make withdrawal requests over the telephone or via post, there are two options available: Option 1 Free of charge, withdrawal instructions to be received by noon of the business day prior to the 15th of the month. Funds would be raised at the next rebalance (we rebalance on or around the 15th of each month). Option 2 - Charge 25 + VAT, we would carry out the sales at the time of instruction. As BPS portfolios are invested in unit trusts, the sales can take up to 5-6 working days to settle. Withdrawals cannot be made from a Junior ISA until the child reaches the age of 18. How will I receive my payment? Our standard method of payment is via BACS. This is a free of charge service and funds will be in your account in 2-3 working days. If you would prefer to receive the funds immediately on settlement, we do have the option to pay via CHAPS. This is a same day transfer at an additional cost of 15. Can I view my investments online? Yes, you can review your investments at any time by logging into your secure account. To find out more and to get access, please contact us on How can I keep track of how my portfolio is performing? You can check your account online at any time and we will send you quarterly statements. Each portfolio has its own performance benchmark against which you will be able to measure performance. Benchmarks are covered in detail on page 22. What happens if I want to close my account? We have two options for closing an account: Option 1 Free of charge, closure instructions to be received by noon of the business day prior to the 15th of the month. The portfolio would be liquidated at the next rebalance (we rebalance on or around the 15th of each month). Option 2 - Charge 25 + VAT, we would carry out the sales at the time of instruction. As BPS portfolios are invested in unit trusts, the sales can take up to 5-6 working days to settle. All accounts are subject to an Account Closure Fee of 25 + VAT. Can I transfer my account to another provider? Yes, you will need to contact your new provider who will then instruct us to transfer the portfolio. Where your provider allows you to move your portfolio to them without being liquidated (often referred to as an in specie transfer), there would be a charge of 15 per line of stock. Where your new provider requires us to liquidate your portfolio and transfer in cash, we have two options available: Option 1 Free of charge, closure instructions to be received by noon of the business day prior to the 15th of the month. The portfolio would be liquidated at the next rebalance (we rebalance on or around the 15th of each month). Option 2 - Charge 25 + VAT, we would carry out the sales at the time of instruction As BPS portfolios are invested in unit trusts, the sales can take up to 5-6 working days to settle. All accounts are subject to an Account Closure Fee of 25 + VAT.

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28 Brewin Portfolio Service Access to the investment expertise and experience of a leading UK wealth manager The benefits of over two centuries of investment experience Round the clock access via our investment app A cost-effective way to invest with an industry leader Balancing risk in an investment portfolio that s right for you Quick and easy to apply and hassle-free to invest. T: E: customer.services@brewin.co.uk W: Brewin Dolphin Limited is a member of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority No Registered office: 12 Smithfield Street, London EC1A 9BD. Registered in England and Wales No BPS _1