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RELATIVE RETURN STRATEGIES
CLASSIC PORTFOLIO
Key Features Document
Lloyds Bank Private Banking Classic Portfolio is an actively managed,
discretionary portfolio that invests mainly in cash, individual bonds,
equities and funds of hedge funds (as defined overleaf) and aims
to outperform the benchmark for your asset allocation profile in
accordance with your individual risk tolerance.
Your portfolio is transparently structured in accordance with the
investment profile of your choice, taking into account your level of
risk tolerance, your base currency (GBP, USD and EUR options are
available) and your return objectives over time.
Key features
• Portfolio structured in accordance with your investment profile.
• Investment in cash, individual bonds, equities, investment funds
and funds of hedge funds.
• Active management designed to outperform the benchmark
for your chosen asset allocation profile through tactical asset
allocation and a selection of investment vehicles.
• Aims to reduce the overall portfolio risk by diversifying
the portfolio.
• Available in three investment profiles and three currencies.
Eligible investment vehicles
• Collective Investment Funds.
• Exchange Traded Funds (ETFs). (These provide an element
of index tracking and are a cost efficient way of investing).
• Single shares and bonds.
• Others (as defined overleaf).
Please note: Past performance is not an indicator of future
performance. Prices can rise as well as fall.
Our approach
The Classic Portfolio is a Relative Return Strategy, designed
for clients who seek relative outperformance through asset
diversification, and disciplined stock selection strategies.
Our approach relies on understanding your personal risk tolerance,
defining your asset allocation and actively managing the
selected asset allocation, duration, credit allocation, stock and
bond selection.
The Classic Portfolio offers you three different investment profiles;
Conservative, Balanced and Dynamic. Your investment profile will be
dependent upon your individual risk tolerance.
The Classic Portfolio diversifies your portfolio across asset classes
according to the investment strategy of Lloyds Bank Private Banking.
This diversification aims at reducing investment risk in accordance
with your investment profile. Lloyds Bank Private Banking are
assisted by Aberdeen Asset Management* which is backed by a
support network of expert researchers, planners and analysts. Our
aim is to make your investment a success by monitoring the right
asset classes and carefully selecting the funds for your investment.
* Investment management expertise is provided to Lloyds Bank
International by Aberdeen Asset Managers Limited, which is
authorised and regulated by the Financial Conduct Authority in the
United Kingdom and is a wholly owned subsidiary of Aberdeen Asset
Management PLC. Aberdeen Asset Management is a trading name
of Aberdeen Asset Management PLC.
You will benefit from
• Diversification across asset classes.
• Inclusion of funds of hedge funds and other instruments,
which aim to reduce overall portfolio risk (volatility) without
compromising expected returns.
• A selection of investment profiles designed to match your
individual needs.
• We have the flexibility to vary the percentage of holdings within
each asset class depending on market conditions. This tactical
asset allocation therefore gives us the flexibility to obtain better
portfolio performance.
• Transparency through direct investing in cash, individual bonds,
equities, investment funds and funds of hedge funds.
• Continuous monitoring of portfolio allocation to
optimise performance.
Associated risks
• The risk that you will be exposed to is dependent on your risk
profile, for example, the Conservative profile will expose you to
less risk than the Dynamic profile.
• Portfolios can deviate from the long-term investment policy
(tactical asset allocation). Therefore you may be under/overexposed to an asset class for a period.
• A part of the portfolio (up to 20%) can be invested in assets that
are less liquid than traditional assets, for example, hedge funds,
which may only be traded on a monthly or quarterly basis, to which
a notice time of up to several months may be added. In some
circumstances, the liquidity period may be longer. Liquidation
will occur as soon as possible in accordance with market practice
and conditions.
• Hedge funds are unregulated entities. Therefore, Lloyds Bank
International Limited select fund of hedge fund managers and
perform a high level of due diligence on the management,
the investment strategies and operations of the underlying
hedge fund managers. Hedge fund managers provide less
transparency than mutual funds. It is critical that the underlying
fund of hedge fund manager demands independent pricing and
trade verification.
• The products and services mentioned in this document may
not be suitable for all investors; if you have any doubts, you
should seek advice from your investment adviser before taking
any action.
• Financial markets can be very volatile and the value of shares
and income from them can go down as well as up and cannot be
guaranteed. Also, changes in rates of exchange may cause the
value of an investment to go up or down. Consequently, on selling,
investors may not get back the amount they originally invested.
• There is the risk that selected investments could under‑perform.
• Each structured product has its own risk profile that cannot be
strictly assimilated to a particular asset class. Issuer risk (the
stability of the issuer) and liquidity risk (that some of the assets
may not be ready realisable) need to be considered as a sale
during the term can be done at an unfavourable price. It can be
difficult or impossible to determine a fair price or even compare
prices at all, as there is often only one market maker.
• The final performance of an investment product chosen in a
currency different to that of your home or base currency can
increase or decrease as a result of currency fluctuations.
Minimum investment
GBP 1,500,000 or currency equivalent.
Lending against the portfolio
It is possible that we can lend money which is secured against
the portfolio. The Loan to Value ratio, or the percentage of
the overall portfolio value that could be borrowed, will depend
upon your investment profile. However, lending is subject to
approval by our lending manager who will review the client’s
individual circumstances.
Currency
This product is available in GBP, USD and EUR.
Terms and Conditions
Details of our Terms and Conditions are available through one
of our relationship managers.
What next?
For more information, please call your relationship manager who
will be happy to advise you further on our Classic Portfolio offer.
Contacts
You can also contact us at the following address:
Lloyds Bank Private Banking
PO Box 195, 11–12 Esplanade, St Helier, Jersey JE4 8RS
Channel Islands
Asset allocation
Investment Profiles
Equities
Home Market
Conservative
Balanced
Dynamic
Benchmark
Range
Benchmark
Range
Benchmark
Range
22.5%
10.0%–30.0%
45.0%
27.0%–63.0%
70.0%
48.7%–100%
13.5%
27.0%
42.0%
Home Market for Sterling based portfolios is UK, for US Dollar based portfolios this is USA and for Euro based portfolios it is EU countries.
Global Markets
(excl. Home Market)
9.0%
18.0%
28.0%
Bonds
40.0%
24.0%–56.0%
27.5%
15.0%–40.0%
10.0%
0.0%–20.0%
Cash
25.0%
15.0%–45.0%
12.5%
7.0%–35.0%
3.0%
0.0%–25.0%
Real Estate
2.5%
0.0%–4.0%
5.0%
0.0%–7.0%
7.0%
0.0%–14.0%
Alternative Investments
10.0%
0.0%–15.0%
10.0%
0.0%–20.0%
10.0%
0.0%–20.0%
The term “alternative investment” refers to investments in Fund of Hedge Funds/Hedge Funds. A Hedge Fund is an investment fund that has the
ability to invest in a wider range of investments than a traditional investment fund. The aim of a Hedge Fund is to provide consistent returns rather than
outperformance of a benchmark.
Others
0.0%
0.0%–7.0%
0.0%
0.0%–12.0%
0.0%
0.0%–20.0%
Under this category, investments in specific sectors or themes, that cannot be classified under the traditional asset classes (e.g. commodities, volatility,
interest rates) are made through structured products, collective investment schemes, convertibles bonds, derivatives and other suitable investment
vehicles. These are made in compliance with the investment risk profile.
Min. home currency exposure
80.0%
60.0%
N.B. Deviation from asset allocation may occur as market conditions and investment policy change.
50.0%
Please go to lloydsbank.com/international
or call us on +44 (0) 1534 845 550
Your call may be monitored or recorded in case we need to
check we have carried out your instructions correctly and to
help improve our quality of service.
Issued by Lloyds Bank International Limited trading as Lloyds Bank Private
Banking: Registered Office and principal place of business: PO Box 160,
25 New Street, St Helier, Jersey JE4 8RG. Registered in Jersey No. 4029.
Regulated by the Jersey Financial Services Commission. We abide by the
Jersey Code of Practice for Consumer Lending.
Rules and regulations made under the UK Financial Services and Markets
Act 2000, including the Financial Services Compensation Scheme, do not apply
to the financial services business of companies within the Lloyds Banking Group
carried out from offices outside the United Kingdom.
The information contained in this document does not constitute an invitation
to buy or the solicitation of an offer to sell securities or accept deposits or to
provide any other products or services in any jurisdiction to any person to whom
it is unlawful to make such an offer or solicitation, nor should it be construed to
constitute any investment advice.
Legislation or regulations in your home jurisdiction may prohibit you from
entering into such a transaction with us. We reserve the right to make final
determination on whether you are eligible for any products or services.
Residents or Nationals of certain jurisdictions may be subject to exchange
controls and should seek independent advice before entering into any
transactions with us.
This document has been approved by Lloyds Bank Private Banking Limited.
Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in
England and Wales No. 2019697. Authorised by the Prudential Regulation
Authority and regulated by the Financial Conduct Authority and the Prudential
Regulation Authority under number 122626.
OB4176 (05/14)