Smartfund Sharia Compliant Mandates 30 SEPTEMBER 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 the Islamic Bank of Britain. 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 6 Broad Street Place London EC2M 7JH 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 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 6 Broad Street Place, EC2M 7JH 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 SEPTEMBER 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. BLME Global Sukuk fund 51.9 BLME Sharia Income fund - GBP 34.0 Salam Pax Serenity Sukuk 4.9 Cash 3.9 Oasis Global Property 2.1 notionally allocated holdings Number of Holdings 5-7 Historic portfolio yield 1 2.33% TER of investments only 1.43% 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. August. We also added to equity in mid-september by reintroducing the Oasis property fund. We also reduced the BLME Income fund, a shorter dated maturity fund, into the longer dated BLME Global Sukuk fund. At the time of writing, these changes have been value accretive. +3.68% (31 st December 2014 @ 1.5579 USD per 1, 30 th September
Cautious Strategy 30 SEPTEMBER 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. BLME Global Sukuk fund 44.7 ishares MSCI USA Islamic index ETF 15.0 BLME Sharia Income fund - USD 14.8 IShares MSCI World Islamic ETF 8.5 Cash 4.6 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 2.08% TER of investments only 1.29% MSCI World ETF. We also added to equity in mid-september by bounce back from the lows. +3.68% (31 st December 2014 @ 1.5579 USD per 1, 30 th September PAST SHOULD NOT BE SEEN AS A GUIDE TO FUTURE performance of an asset class included in the long term strategic asset allocation used to achieve the risk weighting of the model. The percentage of the composite formed by each index is the same as that of the relevant asset class within that strategic asset allocation. The cash figure represents the performance of cash based on the British Bankers Association - LIBOR 3 Month GBP rate. All index data has been obtained from Bloomberg. Actual performance data does not exist before the 31 October 2011. Sharia Cautious strategy -0.55-2.10-1.21 +1.21 +7.08 +7.07 +5.41 +20.38 4.42 Sharia Cautious benchmark -0.15-0.54-0.74 +2.22 +6.52 +2.54 +5.29 +15.13 4.86 * inception and volatility numbers calculated from 31 October 2011-30 September.
Balanced Strategy 30 SEPTEMBER 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. BLME Global Sukuk fund 29.3 IShares MSCI USA Islamic index ETF 26.7 IShares MSCI World Islamic index ETF 15.6 BLME Sharia USD Income fund 8.0 Salam Pax Ethical Fund of Funds 5.0 notionally allocated holdings. Number of Holdings 10 12 Historic portfolio yield 1 1.74% TER of investments only 1.12% MSCI World ETF. We also added to equity in mid-september by bounce back from the lows. +3.68% (31 st December 2014 @ 1.5579 USD per 1, 30 th September PAST SHOULD NOT BE SEEN AS A GUIDE TO FUTURE performance of an asset class included in the long term strategic asset allocation used to achieve the risk weighting of the model. The percentage of the composite formed by each index is the same as that of the relevant asset class within that strategic asset allocation. The cash figure represents the performance of cash based on the British Bankers Association - LIBOR 3 Month GBP rate. All index data has been obtained from Bloomberg. Actual performance data does not exist before the 28 th February 2011. Sharia Balanced strategy -1.00-3.51-3.10-0.32 +7.77 +9.91 +6.41 +20.37 6.34 Sharia Balanced benchmark -0.69-1.97-2.00 +1.40 +7.92 +5.37 +6.72 +18.65 6.45 * inception and annualised volatility numbers calculated from 28 February 2011-30 September.
Growth Strategy 30 SEPTEMBER 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. ishares MSCI USA Islamic index ETF 37.7 ishares MSCI World index ETF 22.1 BLME Global Sukuk fund 13.4 Salam Pax Ethical Fund of Funds 6.0 Amundi Islamic Asia Pacific Quant fund 4.7 notionally allocated holdings. Number of Holdings 10 12 Historic portfolio yield 1 1.38% TER of investments only 0.94% MSCI World ETF. We also added to equity in mid-september by bounce back from the lows. +3.68% (31 st December 2014 @ 1.5579 USD per 1, 30 th September PAST SHOULD NOT BE SEEN AS A GUIDE TO FUTURE performance of an asset class included in the long term strategic asset allocation used to achieve the risk weighting of the model. The percentage of the composite formed by each index is the same as that of the relevant asset class within that strategic asset allocation. The cash figure represents the performance of cash based on the British Bankers Association - LIBOR 3 Month GBP rate. All index data has been obtained from Bloomberg. Actual performance data does not exist before the 28 th February 2011. Sharia Growth strategy -1.46-4.98-4.87-1.98 +8.46 +13.02 +8.08 +26.54 7.72 Sharia Growth benchmark -1.33-3.65-3.38 +0.47 +9.44 +8.26 +8.33 +24.02 7.70 * inception and annualised volatility numbers calculated from 31 October 2011-30 September.
Aggressive Growth Strategy 31331 30 SEPTEMBER 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. ishares MSCI World Islamic index ETF 73.0 Salam Pax Ethical Fund of Funds 7.0 Amundi Islamic Asia Pacific Quant fund 6.4 ETF Secs Physical Precious Metal Trust 5.0 ishares MSCI Islamic Emerging Markets ETF 4.0 notionally allocated holdings. Number of Holdings 6 8 Historic portfolio yield 1 1.27% TER of investments only 0.87% MSCI World ETF. We also added back to equity in mid-september by bounce back from the lows. We sold the US ETF into the MSCI World ETF in anticipation of booking a new global fund in the next few weeks. PAST SHOULD NOT BE SEEN AS A GUIDE TO FUTURE Sharia Aggressive Growth strategy -2.57-6.76-7.46-4.34 +8.57 +14.55 +6.31 +22.13 8.69 Sharia Aggressive Growth benchmark -1.83-4.93-4.45-0.29 +10.31 +9.68 +9.02 +25.66 8.74 * inception and annualised volatility numbers calculated from 30 September 2011-30 September. performance of an asset class included in the long term strategic asset allocation used to achieve the risk weighting of the model. The percentage of the composite formed by each index is the same as that of the relevant asset class within that strategic asset allocation. The cash figure represents the performance of cash based on the British Bankers Association - LIBOR 3 Month GBP rate. All index data has been obtained from Bloomberg. Actual performance data does not exist before the 30 th September 2011.