The fundamental concept of a growth portfolio is investment in securities that offer potential capital gains at the expense of a stable income. In general, we select assets offering rather substantial capital gains but characterised by low current yields. Thereby, we aim to achieve capital gains over the medium term, during which the portfolio may experience market-price volatility, as well as unfavourable moments.

This type of portfolio may maintain part of its assets in deposits in the reference currency.

In this type of portfolio, investments are spread between equities, convertible bonds and some fixed-income instruments. The portfolio’s exposure to the equity market will take the form of defensive stocks as well as growth stocks, and a selection of convertibles will further expose the portfolio to certain foreign markets. The fixed-rate instruments - e.g. bonds - provide the portfolio with a quality profile (with a high average rating) combined with average volatility (for average maturities) and, sometimes, debt of lower-quality issuers, e.g. Latin-American issues.

In order to further outperform deposits and short-term paper, the portfolio may be exposed to certain other types of financial assets. These will be essentially capital-protected deposits linked to the performance of an underlying instrument - typically a stock-market index.