Smart Defined-Risk Funds
Smartfunds are a range of three funds managed by Smart Investment Management (Smartim) and designed to actively target and maintain different levels of risk to suit investors with different risk and return requirements. Because the portfolios consistently target defined levels of risk, advisers can more easily identify which strategy may be appropriate for an investor’s appetite for risk and investment objectives. Fund manager Smartfund Administration’s sophisticated technology creates a more transparent and information-rich experience than traditional funds. Investors can not only see the underlying holdings within their funds but can also see all charges.
Choose from five risk-assessed strategies:
|Principal Investment Objective||Indicative Number of Funds||Minimum Investment|
|Smartfund Cautious||To provide relatively stable returns over the medium term with the potential for some long-term capital growth||10-15||£3,000|
|Smartfund Balanced||To provide a balance of income and capital growth over the medium to long term||10-15||£3,000|
|Smartfund Growth||To provide long-term capital growth with less fluctuations of returns than 'high growth' investment options||10-15||£3,000|
The Smartfund 80% Protected range
Not everyone is able or wants to ride the waves of the equity markets
The Smartfund 80% Protected range offers an alternative strategy for clients who want access to the upside potential of equity markets but either don’t want to take risks with their capital or have reached a point in life, like retirement, where they cannot afford to.
The Funds’ investment engine is managed by Smartim. The team has an established track record of actively managing multi-asset portfolios and has attracted over £230 million of assets into a range of risk-graded multi-asset portfolios and funds since launch in January 2014.
The protection component for the range is supplied by Morgan Stanley. Morgan Stanley’s UCITs IV regulated platform, FundLogic SAS, operates the funds and is the Investment Manager. The protection element is delivered using an innovative option-based approach which allows the fund to avoid the ‘cash locking experience’ of traditional Constant Proportion Portfolio Insurance (CPPI) strategies. Additionally, the Funds employ a variety of mechanisms designed to control the costs of protection so clients can benefit from better risk-adjusted returns without experiencing eroded performance as a result of unnecessary protection costs.
Key reasons to invest in the Smartfund 80% Protected Range
- An opportunity for growth: Each Fund invests in a carefully constructed blend of different asset classes that can include equities, bonds, property, commodities, foreign exchange, alternative investments and cash.
- Locks in profits: The Funds are designed to protect against the share price falling below a certain level. As the share price increases, the protected price also increases. This means that from launch investors in the Funds benefit from a continuous level of protection of 80% of the highest ever fund value.
- Daily liquidity: You can buy or sell your investment on a daily basis. There is no fixed period or penalties when you sell your investment.
- Peace of mind: The protection component of the Funds is provided by Morgan Stanley, which has the following credit ratings:*
|Ratings providers||Morgan Stanley credit rating|
|Fitch Ratings, Inc.||A|
|Moody's Investors Service||A3|
|Standard & Poor's Ratings Services||A-|
The price protection offered by the Smartfund 80% Protected range is not guaranteed and is provided by Morgan Stanley. In certain circumstances the protection could be reduced or even removed.
* Source: Morgan Stanley Senior Unsecured Ratings - Long-term debt and Rating Outlook for MS Parent at 31-Jul-2015.
This information is for the use of financial advisers and institutional or professional investors only and should not be relied upon by private clients. Shoud any potential investors have sight of this information they must not place any reliance upon its content. It does not constitute advice relating to legal, taxation, investment or any other matters and therefore all potential investors are strongly recommended to seek independent financial advice before investing in this fund.