What are Separately Managed Accounts?
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The SMARTfund Range
System Demos
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Products & Services
Features of SMARTfunds
- Who can set up their own SMARTfund?
- The SMARTfund structure
- Who is the Fund Manager?
- Who is the Investment Manager?
- Types of funds which can be created
- Rebalancing & Reporting
- Pricing Control & Cost Efficiencies
- Who retains ownership of the fund?
- Want to find out more?
Who can set up their own SMARTfund?
The SMARTfund Service is designed for Financial Advisers, Wealth Managers, and any firms looking to set up their own funds that have sufficient funds under management and/or advice to do so.
The SMARTfund structure
The SMARTfund is structured as an umbrella fund with multiple sub-funds. Each sub-fund has its own investment objectives and can hold a variety of assets, including other investment funds and equities.
Who is the Fund Manager?
A duly authorised Fund Manager must be responsible for the operation of the fund.
Præmium’s wholly owned subsidiary, SMARTfund Administration Ltd, can provide authorised fund management services if required. Alternatively, suitably authorised firms can undertake this role themselves.
Who is the Investment Adviser?
Decisions on the assets held within the funds are made by appropriately authorised and qualified Investment Managers or Advisers. This role is separate and distinct from the Authorised Fund Manager, who is responsible for the operation of the fund.
The use of SMA technology in an AUT provides an efficient and transparent capability for multiple Investment Managers to contribute their investment models as separate sub-funds within the same umbrella.
Many Investment Managers already outsource the day to day running of their funds to third party administrators and so are familiar with this operating model.
Types of funds which can be created
Subject to the terms of its authorisation, SMARTfunds are able to hold any asset type which would normally be able to be held within a CIS structure including other AUTs, OEICs, and ETFs.
By using Præmium’s SMA technology, you can create your own fund of funds without the high TER which it is normally associated with Multi-Manager funds. The investor can then see their investment as a portfolio of funds and use the platform to help understand performance and costs.
The SMA technology used to create a SMARTfund is also ideal for investment strategies based on UK equities. This technology maintains the investment models and generates the buy/sell orders for specific equities as the model is adjusted by the Investment Manager. This is the ‘purest’ and least expensive operating model. The Adviser and Investor can see within their unit to the underlying equities which make up their SMARTfund.
In addition, the SMARTfund structure facilitates the construction of risk profile based managed portfolios. SMARTfund achieves this by enabling managed portfolios to be constructed as individual sub-funds which then allow adjustments to models to be made without incurring a CGT liability or a need to refer to the investor for approval. Each managed portfolio, or sub-fund, can be linked to a risk profiling tool to match the risk-rating produced with an asset allocation model, which in turn determines the fund or stock selection which can again be outsourced to a specialist.
The first range of SMARTfunds available within Præmium’s own SMARTfund Advantage Umbrella are constructed as Risk based Managed Portfolios. 'Find out more about the Managed Portfolios from OBSR'.
Rebalancing & Reporting
Assets held in an individual sub-fund can be rebalanced by the Investment Manager as necessary. In this way sub-funds of funds can be created to meet particular risk profiles or investment objectives and managed as economic conditions change.
As SMARTfunds are delivered using Præmium’s proprietary SMA technology, each SMARTfund comes with a comprehensive online reporting and portfolio management platform.
This platform offers the ability to manage a client’s asset allocation online; creating unique allocations by spreading a client’s investments across multiple models to meet their personal objectives.
Assisting these decisions, the platform’s comprehensive performance and CGT analysis and reporting capability can also be made available to clients or other third parties (brokers, accountants) at the discretion of the licensing party.
Pricing Control & Cost Efficiencies
The inherent structure of funds created using Præmium’s SMA Service, and the technology on which it operates, creates cost efficiencies when compared to a traditional fund. Reduction in cost is achieved by removing the additional layer of administration (duplication of registry) that is implicit when buying investment product through a platform, while still providing investors with the value-add reporting and portfolio analysis services of a platform.
This enables you to brand an Authorised Unit Trust for distribution to your clients which may be more cost-efficient than similar alternatives. You determine how these efficiencies are passed onto the Investor by designing your own pricing structure.
Branding
The Fund Manager maintains responsibility for the operation of the fund and so is required to have its name included in the name of the fund. Over and above that the adviser can choose how the fund is branded. Præmium has created its own version, 'SMARTfund Advantage' and equally an adviser or wealth management firm can create their own white-labelled version.
Want to find out more?
Contact Præmium today to find out more about how you can benefit from using the SMARTfund Service.
Email:
enquiries@praemium.com
Telephone:
+44 (0) 207 562 2450
If you would like to submit an enquiry online, please click here.
Click here to view options if you are a Financial Adviser
Click here to view options if you are an Investment Manager
The information provided above is for Professional Advisers only and should not be relied upon by retail investors: The Fund Management component of Præmium’s SMA services is provided by SMARTfund Administration Ltd (Company Number 06016828). SMARTfund Administration Ltd is registered in England and Wales and is wholly owned by Præmium Portfolio Services Ltd (Company Number 05362168).The registered address of SMARTfund Administration Ltd is 6 Broad Street Place, London, EC2M 7JH. SMARTfund Administration Ltd is authorised and regulated by the Financial Services Authority under reference 463566. See www.fsa.gov.uk/register for more details.