THIS DOCUMENT IS FOR FINANCIAL ADVISERS AND INSTITUTIONAL/PROFESSIONAL INVESTORS ONLY AND SHOULD NOT BE RELIED UPON BY PRIVATE CLIENTS.
An investment in any of the funds in the Smartfund range, and specifically the Smartfund 80% Protected funds, carries a number of considerations and risks. The information outlined on this page is intended to summarise the key risks. There are other general risks which include risk of partial loss of capital, market risk, currency risk and counterparty risk.
- The Smartfund 80% Protected fund offers 80% protection of the highest fund value achieved, which means that in extreme market conditions the value of your investment can go down by 20%.
- Where we refer to “locked-in profits” this relates to the protection level of 80% of the highest fund value achieved. If the protection level increases above the previous fund-value high, then 80% of any such upside is protected, or “locked in”, thereby continually increasing the protected level.
- Morgan Stanley provides the protection component of the Smartfund 80% Protected fund and acts as counterparty to the fund, so if Morgan Stanley becomes insolvent the protection component may fail.
- In their role as Investment Manager, Fundlogic Alternatives PLC will seek to hedge the share classes of the funds to counteract the impact of currency fluctuations. In extreme situations they may not be successful in protecting against all exchange-rate risk, which may result in the capital protection of Smartfund 80% Protected being less than 80% of NAV for the USD and EUR share classes.
- The Smartfund 80% Protected fund aims to deliver the maximum protection with the minimum negative impact on your investment returns. To achieve this, a monthly performance cap is set for each strategy.
- Smartfund 80% Protected Growth: monthly cap of between 5% and 6%
- Smartfund 80% Protected Balanced: monthly cap of between 3% and 4%
These caps vary depending on the fund’s risk profile. The more significant the equity exposure, the greater the potential investment returns, so the Smartfund 80% Protected Growth will have a higher cap than the Smartfund 80% Protected Balanced to ensure you get as much of the upside as possible. Though it would be rare for the funds to breach these caps, extreme market conditions do occur, and if the performance of the fund does exceed the level of the cap in any calendar month then you will achieve returns in line with but not above it.
- Morgan Stanley uses a number of mechanisms to keep the cost of protection to a minimum; however, the cost of protection will likely result in the Smartfund 80% Protected funds underperforming the Smartfunds over the longer term and in rising or flat market conditions.
- The value of each Smartfund may be affected by various market risks, including interest rate risk, inflation risk, exchange-rate risk and the risk that the strategy managed by Smart Investment Management will underperform its benchmark.
- The risks of investing are outlined in detail in the Prospectus, the Supplement to the fund and the Key Investor Information Document (KIID). We urge you to read these documents prior to recommending an investment in the Smartfund Range. You should also provide copies to your client so they can make an informed investment decision. All clients must take advice from a financial adviser prior to making an investment in the Smartfund Range.
Advisers and potential investors should not treat this website or any of its content as advice or any recommendation to buy or sell any investment.
The value of an investment and any income from it can go down as well as up. Accordingly, invested capital is at risk and investors may get back less than they invest.
Past performance is not a guide to the future and any views or opinions expressed may change.
Investing in the Smartfunds range
The Smartfund 80% Protected funds and the Smartfund funds are all sub-funds of FundLogic Alternatives plc which is a UCITS fund incorporated in Dublin and regulated by the Central Bank of Ireland. Decisions and advice in relation to any of the Smartfunds should not be made without reading the latest applicable Key Investor Information Document and Supplementary Prospectus, available on this website or on request.
The Smartfunds are not offered for sale in the USA, its territories or possessions nor to any US persons including citizens of the United States, nor in any jurisdiction in which the funds are not authorised to be publicly sold. The funds are available only in jurisdictions where their promotion and sale are permitted.
The information contained in the website may not be redistributed directly or indirectly to any citizen or resident of the United States or any other jurisdiction where its distribution may be restricted by law.
The following pages of this website are issued by Smart Investment Management Ltd, a member of the Praemium Group which is authorised and regulated in the UK by the Financial Conduct Authority.
For further information, or to learn more about any of the Praemium products, please contact your sales representative or call us on