Diversification

The appeal of Premium’s investment approach lies in the risk reducing benefits of diversification. Diversification can provide greater protection against loss because the performance impact of a single investment is lower in a portfolio exposed to different investment manager styles, a cross section of investment markets and a variety of different industries, than it is in a portfolio with a more narrow set of investments. Overall, diversification should result in the portfolio being less volatile than the broader sharemarket.

Geography

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As a global investor, Premium invests approximately half of its share portfolio in countries outside of Australia. Premium is also an active investor, and will hold up to half its portfolio in cash when market conditions warrant.

Industry

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As a long term investor focusing on income, Premium’s investment managers invest in companies with sound long term earnings prospects. Premium’s exposure to industry sectors is therefore the result of individual stock selections.

Managers

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By using specialist boutique managers to invest the portfolio, Premium is giving shareholders access to true market expertise, and a range of investment styles.

The Portfolio Information on this page is provided at 31 December 2011 and is for general information only.