Smartfund Sharia Compliant Mandates 30 TH SEPTEMBER 2016 WHAT ARE THE SMARTFUND SHARIA COMPLIANT MANDATES? The Smartfund Sharia Compliant mandates are a set of volatility based investment strategies that give investors a wholly Sharia compliant return according to their assigned risk profile. Investments will be selected and reviewed in accordance with the investment objective, policies and limits set out in Appendix 1 of the Investment Mandate document. Only investments certified as Sharia compliant will be purchased. All investments will have been reviewed by approved Islamic scholars and the investment issued with a Fatwa. In particular no investments in the following will be permitted: Interest bearing certificates or accounts Non Islamic deposits at banks Non Islamic Insurance companies Alcohol Pork related substances Tobacco companies Gambling Pornography manufacturers, retailers and distributors INVESTMENT PROCESS DETAILS Custodian Each potential asset that is deemed appropriate for investment is reviewed by the Sharia compliance officer of Al Rayan Bank. His final say confirms whether the asset can be included within the service. Strategic asset allocations have been developed for each of the risk based strategies, and relative return and volatility score is attached to each asset. Smartfund Administration then builds the portfolios from the permitted assets that are appropriate for each strategy. Smartfund Administration may also provide tactical overlay to the strategic asset allocation enabling the portfolios to take advantage of shorter term shifts or market trends and also valuation differentials between the assets. Manager s Details 4 th Floor, Suite 643-659, Salisbury House, London Wall, London EC2M 5QQ Start Date 1 st August 2012 Currency GBP Minimum Initial Investment 10,000 Minimum Additional Investment Minimum Withdrawal Investment 5,000 ( 250 for regular payments) 5,000 ( 40 for regular withdrawals) SMARTFUND ADMINISTRATION LTD Smartfund Administration Limited is the custodian of all the securities and other assets held through dps Select and the of the Investment Mandates described in this document. Smartfund Administration Ltd is authorised and regulated by the Financial Conduct Authority whose address is 25 The North Colonnade, Canary Wharf London E14 5HS. It is entered on the Financial Conduct Authority s register under reference number 463566. Smartfund Administration Limited also administers dps Select. Its ultimate holding company is Præmium Limited, one of Australia s leading suppliers of online financial portfolio administration and Separately Managed Account (SMA) technology. Præmium Limited is incorporated in Australia and listed on the Australian Stock Exchange. Anthony Corbett has been engaged by Smartfund Administration Limited as an investment adviser. Anthony previously had developed and advised on the Sharia investment mandates at a prior firm. He intends to transfer to another investment management firm in due course at which point that firm is likely to offer its own investment mandates through dps select. Investors who select the Investment Mandates described in this document will be deemed to have agreed to the novation and transfer of the Investment Manager s agreement to provide portfolio management services through dps select under the Investment Mandates described in this document to a new investment management firm. INVESTMENT OPPORTUNITIES General Investment Account ISA SIPP (via Pointon York esipp or Carey Pensions SIPP) Offshore Bond (via AXA) Autoenrolment pension (via Islamic Pension Trust) CONTACT US If you would like to find out about how to invest into these funds, please contact us at: Telephone: 0844 801 0700 Email: sales@praemium.co.uk or anthony.corbett@praemium.com (6016828) is registered in England at 4 th Floor, Suite 643-659, Salisbury House, London EC2M 5QQ and is authorised and regulated by the Financial Conduct Authority under ref. 463566. Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only. Investors should also note that the views expressed may no longer be current and may have already been acted upon by the Investment Adviser and/or Manager. The investment service may not be suitable for all Investors and if you have any doubts you should contact your Financial Adviser.
Defensive Strategy 30 TH SEPTEMBER 2016 To generate returns primarily through short term Sharia compliant money market instruments and longer term Sukuk (Islamic bond), Murabaha (cost plus profit sale) and Ijara (lease), with a lower risk of capital loss. Investments utilised are a blend of Sharia compliant fixed income funds and a small exposure to physical commodities and property. A low risk strategy. You are prepared to take a small level of risk with your capital for the prospect of higher growth than that obtainable from a cash investment. Investments utilised within the fixed income products that will contain varying proportions of cash, Sukuk, Convertible Sukuk, Wakala, Ijara and Murabaha. There is also an allocation to a physical precious metals trust. Salam Pax Serenity Sukuk C - Acc 78.0% Cash GBP 11.7% Arabesque Global Q3.17 SICAV Systematic USD - Inc 5.1% ETF Sec. Physical Precious Metal Trust - Acc 2.9% Oasis Sharia Global Property equity F fund - Inc 2.3% notionally allocated holdings Number of Holdings 3-7 Historic portfolio yield 1 1.20% TER of investments only 1.20% No segregated mandate has been booked for this strategy and as per FCA guidelines; a track record is therefore not available. A model portfolio return which would be indicative of the performance of the investments within the mandate is available to professional advisers on request from the. We made small increases to the precious metals ETF and trimmed the global property equity fund a little at the end of 9.7% (31st December 2015 @ 1.4736 USD per 1, 30 th September 2016 @ Our current positioning leaves us around 0.5% overweight our target asset allocation for risk assets and 0.5% underweight fixed income and cash. It is our intention to start reducing equity to at least neutral in the coming weeks.
Cautious Strategy 30 TH SEPTEMBER 2016 To generate returns primarily through growth and income with a low risk of capital loss. Investments utilised include equity funds, Sharia compliant fixed income funds, physical commodities and real estate equity funds. A lower risk strategy. You are prepared to take a small level of risk with your capital for the prospect of higher growth than that obtainable from a cash investment. Investments utilised are equity funds, fixed income products that will contain varying proportions of cash, Sukuk, Convertible Sukuk, Wakala, Ijara and Murabaha. There is also an allocation to a physical precious metals and real estate equity. Salam Pax Serenity Sukuk C - Acc 69.0% Arabesque Global Q3.17 SICAV Prime USD - Inc 6.4% DB X-Trackers DJ Islamic Market Titans 100 ETF - Acc 6.3% ishares MSCI World Islamic ETF - Inc 4.4% Oasis Sharia Global Property equity F fund - Inc 2.3% The actual investment held by the fund at any other date may differ. Once invested, both Adviser and Investor can logon to the Sharia DPS Platform to view an up-to-date list of notionally allocated holdings. Number of Holdings 10 12 Historic portfolio yield 1 2.03% TER of investments only 1.39% PAST SHOULD NOT BE SEEN AS A GUIDE TO FUTURE full service charges and adviser fees. For the Cautious account used, adviser charging of 0.50% per annum is included in the total costs. Actual performance data does not exist before the 31 October 2011. Our current positioning leaves us around 2% overweight our target asset allocation for equity and 1% underweight fixed income and cash. The large magnitude of this move has been as a result of outperforming equities in their predominantly USD base currency. It is our intention to start reducing equity to at least neutral in the coming weeks.
Balanced Strategy 30 TH SEPTEMBER 2016 To generate a higher level of return than cash, utilising a core exposure to equity investment. Investments utilised include equity funds, fixed income funds, a physical commodity allocation and real estate equity funds. A medium to higher risk strategy. You are prepared to take a medium to high level of risk with your capital for the prospect of higher growth than that obtainable from cash and fixed income-only investment. A large proportion of your assets will be in equity funds, with the remainder in fixed income products that will contain varying proportions of cash, Sukuk, Convertible Sukuk, Wakala, Ijara and Murabaha. There is also an allocation to a physical precious metals trust and a higher global real estate equity fund allocation. Salam Pax Serenity Sukuk C - Acc 47.0% DB X-Trackers DJ Islamic Market Titans 100 ETF - Acc 13.0% Arabesque Global Q3.17 SICAV Prime USD - Inc 13.0% ishares MSCI World Islamic ETF - Inc 11.7% Arabesque Global Q3.17 SICAV Systematic USD - Inc 4.3% notionally allocated holdings. Number of Holdings 10 12 Historic portfolio yield 1 1.53% TER of investments only 1.09% Total returns in GBP 1m to 30 Sep 2016 PAST SHOULD NOT BE SEEN AS A GUIDE TO FUTURE full service charges and adviser fees. For the Balanced account used, adviser charging of 0.35% per annum is included in the total costs. Actual performance data does not exist before the 28 February 2011. 3m Rolling 12m 2015 2014 2013 2012 Inception * Volatility * Sharia Balanced strategy +0.78 +3.61 +14.35-0.78 +6.09 +9.15 +4.27 +36.71 6.23 Sharia Balanced +1.17 +3.37 +9.22-0.68 +0.66 +9.37 +5.43 +29.65 5.41 * inception and annualised volatility numbers calculated from 28 February 2011-30 September 2016. Our current positioning leaves us around 2% overweight our target asset allocation for equity and 1% underweight fixed income and cash. The large magnitude of this move has been as a result of outperforming equities in their predominantly USD base currency. It is our intention to start reducing equity to at least neutral in the coming weeks.
Growth Strategy 2016 To generate a high level of returns using a substantial part of the portfolio invested in equities. Investments utilised include equity funds, fixed income funds, a physical commodity allocation and real estate equity funds. You are aware that your investments will fluctuate for the prospect of good long term growth. You wish to increase your risk by investing a majority proportion of your money in more volatile equity investments. These have the prospect of potentially higher returns, with the associated possibility of losing some of your original capital. An allocation of up 90% might be in equities, or equity-like investments. A small proportion will be in fixed income products that will contain varying proportions of cash, Sukuk, Convertible Sukuk, Wakala, Ijara and Murabaha. 30 TH SEPTEMBER Salam Pax Serenity Sukuk C - Acc 27.5% DB X-Trackers DJ Islamic Market Titans 100 ETF - Acc 18.8% Arabesque Global Q3.17 SICAV Prime USD - Inc 18.7% ishares MSCI World Islamic ETF - Inc 18.0% Arabesque Global Q3.17 SICAV Systematic USD - Inc 4.1% notionally allocated holdings. Number of Holdings 10 12 Historic portfolio yield 1 1.55% TER of investments only 1.02% Total returns in GBP 1m to 30 Sep 2016 PAST SHOULD NOT BE SEEN AS A GUIDE TO FUTURE full service charges and adviser fees. For the Growth account used, adviser charging of 0.0% per annum is included in the total costs. Actual performance data does not exist before the 28 th February 2011. 3m Rolling 12m 2015 2014 2013 2012 Inception * Volatility * Sharia Growth strategy +0.84 +5.09 +20.30-0.32 +6.17 +13.11 +2.96 +40.41 7.92 Sharia Growth +1.62 +4.69 +12.84-1.28 +0.65 +13.02 +7.26 +33.69 7.26 * inception and annualised volatility numbers calculated from 31 October 2011-30 September 2016. Our current positioning leaves us around 2% overweight our target asset allocation for equity and 1% underweight fixed income and cash. The large magnitude of this move has been as a result of outperforming equities in their predominantly USD base currency. It is our intention to start reducing equity to at least neutral in the coming weeks.
Aggressive Growth Strategy 31331 30 TH SEPTEMBER 2016 To provide a high level of returns by investing almost entirely in equities and commodities, with a small working cash balance. Investments utilised are regional equity funds providing a diversified mix of global equities, a physical commodity allocation and real estate equity funds. You wish to invest your money with few restrictions and accept that your investments are highly volatile. There is the prospect of significant returns but with the associated risk of a large loss of capital. An allocation of up 98% might be in equities, or equity-like investments. Top Five Securities (%) DB X-Trackers DJ Islamic Market Titans 100 ETF - Acc 25.2% Arabesque Global Q3.17 SICAV Prime USD - Inc 25.2% ishares MSCI World Islamic ETF - Inc 24.4% Arabesque Global Q3.17 SICAV Systematic USD - Inc 7.5% Cash GBP 5.0% notionally allocated holdings. Number of Holdings 6 8 Historic portfolio yield 1 1.20% Investment Management Charge 0.45% + VAT TER of investments only 0.78% deployed into both asset classes; equity and precious metals. Our current positioning leaves us around 3% overweight our target asset allocation for equity. The large magnitude of this move has been as a result of outperforming equities in their predominantly USD base currency. It is our intention to start reducing equity to at least neutral in the coming weeks. Total returns in GBP 1m to 30 Sep 2016 PAST SHOULD NOT BE SEEN AS A GUIDE TO FUTURE full service charges and adviser fees. For the Aggressive Growth account used, adviser charging of 0.30% per annum is included in the total costs. 3m Rolling 12m 2015 2014 2013 2012 Inception * Volatility * Sharia Aggressive Growth strategy +1.09 +6.38 +25.26-2.76 +7.19 +14.08 +5.03 +46.00 9.82 Sharia Aggressive Growth +2.26 +6.56 +18.03-2.21 +0.57 +18.21 +9.79 +47.25 10.16 * inception and annualised volatility numbers calculated from 30 September 2011-30 September 2016. Actual performance data does not exist before the 30 th September 2011.