Plain sailing for investors


By Praemium

Added 19th September 2016

Celebrating its first anniversary Smartfund 80% Protected does what it set out to do.

Plain sailing for investors


In today’s volatile and uncertain markets, the desire to minimise risk is often a key determinant in investment decisions.

Clients that have reached retirement or simply do not want to take risks with their portfolio may opt for traditional low-risk asset classes (such as cash or fixed interest) in an effort to protect capital.

However, with current low interest rates and low economic growth, investing in these asset classes may severely limit the ability to grow wealth and meet investment objectives. Worse, it may actually expose your clients to the unintended risks that a lack of diversification brings.

If your clients want to grow capital but are seeking a smoother investment journey, the Smartfund 80% Protected range provides the potential returns of global multi-asset risk-graded portfolios coupled with a minimum capital protection of 80% the highest fund net (NAV) achieved.

Key reasons to invest

  • 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. From launch, that means investors in the funds benefit from a continuous level of protection of 80% of the highest ever fund value.
  • Daily liquidity. This is a Ucits IV fund you can buy or sell on a daily basis. There is no fixed period or penalties.
  • Peace of mind. The protection component is provided by Morgan Stanley, one of the world’s largest financial institutions.

Managing risk

  • The risk-graded portfolio is the performance engine of the fund and is managed by experts at Smart Investment Management (Smartim). Smartim’s philosophy is rooted in the fundamental belief that risk and returns are always related, and that:
  • Diversification will deliver smoother and less volatile returns;
  • Risk tolerance should always be the starting point when constructing a portfolio; and
  • Active management allows them to identify and add considerable value in addition to controlling risk over shorter time horizons.

Each portfolio is designed and managed to meet the needs of a specific client risk profile and invests in a carefully constructed blend of different asset classes that can include equities, bonds, property, commodities, foreign exchange, alternative investments and cash. Each portfolio is available in sterling, dollars and euros.

Delivering protection

Founded in 1935, Morgan Stanley today is one of the largest financial institutions in the world, with a worldwide reputation for excellence in financial advice and market execution. It has offices in more than 43 countries and the people of Morgan Stanley are dedicated to providing clients the finest thinking, products and services to help them achieve even their most challenging goals.

The protection component ensures that at all times the fund NAV is above 80% of the highest fund value achieved. Gains made above the previous highest fund value continually increase the protected value.

The protection is delivered via a mechanism using derivatives. This unique approach enables the fund to benefit from positive performance even if the risk-graded portfolio suffers substantial capital losses.


How can you access the fund?

Smartfund 80% Protected is already available through a wide range of tax wrappers and products for clients looking to make either single or regular investments. For further information about the different routes to investment and the funds themselves please contact a member of our team.   l

For professional advisers only, not intended to be relied upon by retail investors.


Praemium (Europe) Barry Honeyman T: +44 (0)777 1822 529 E:

Praemium (Middle East) Ben Lester T: +44 (0) 734 177 4881 E:

Michael Langton T: +971 (0) 56 895 8507 E:

Praemium general enquires T: +44 (0)207 5622 450 E:

To learn more about Smartfund 80% Protected, visit our website

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