A smarter way to invest

What do clients want? - Its all about outcomes! 3 Protect their capital. Growth to reach their goals. Security of income. Longevity of capital.

Diversification is important to delivering these… 4 Diversification is important to delivering these… Source: Smartim, Lipper 31st December 1985 to 31st December 2013. All figures are total return in sterling.

…but it does not always work - 2008 5 …but it does not always work - 2008 Source: Smartim, Lipper 31st December 2007 to the 31st December 2013. All figures are total return in sterling.

Source: Smartim, Lipper. 6 Look at the experience of balanced multi asset funds Example Balanced Fund Performance Peak to Trough Drawdowns -13% -33% -14% -16% Source: Smartim, Lipper.

Source: Smartim, Lipper 7 So where are we today? Bonds are not the safe haven they once were The impact of an increased expectation of a rate increase on German Bund Yields in July 2015! Source: Smartim, Lipper

Time for an alternative strategy? 8 Time for an alternative strategy? Performance engine is a multi-asset investment portfolio. Investment Portfolio Put option linked to the investment portfolio ensures a minimum protection level of 80% of the max NAV. Protection Component Protected Fund NAV

How would a strategy like this have performed over 10 years? 9 How would a strategy like this have performed over 10 years? Growth Portfolio 80% Protected Growth Fund Performance 7.4% 6.9% Volatility 15.7% 8.6% Max peak to trough drawdown -54.5% -20.00% Smartfund Protected Growth Strategy Source: Smartim. All returns are in sterling and include reinvestment of dividends. The table shows historical simulation of the 80% Protected portfolio vs the respective unprotected version over 10 years to 31 July 2015. These performance figures reflect what a client might have expected to have received gross which is before the deduction of any fund management charges or adviser fees. The annual management charge of the fund is 1.95%. These figures include the impact of the monthly performance cap and cost of protection. Past performance is not an indicator of future results.

Actively managed investment engine 10 Actively managed investment engine Diversification remains an important building block to stabilising investment returns Balanced Fund Growth Fund Equity Absolute Return Cash Fixed Income Property/Infrastructure Commodities

Active control of exposure to market volatility 11 Active control of exposure to market volatility The fund uses an active risk on/risk off strategy based on prevailing market volatility vs a target, or expected level exploit the long term trends between volatility and return maintain the fund’s volatility close to the specified target level (helping to manage the risk of suitability drift) minimise the costs of purchasing protection (and their variability) 12 % 8% 150% Growth Volatility Target 125% Balanced 150% Asset Exposure 50% Asset Exposure 100% Asset Exposure Maximum Exposure 50% Cash Exposure -50% Cash Exposure Illustrative composition of 12% risk budget with 150% maximum exposure in different market volatility regimes

For illustration purposes only. 12 How can downside protection work inside a fund? 1 Year Fund Launch: Fund NAV equal to the value of two assets: the investment strategy and protection component. Investment strategy Protection component Max NAV 2 Year Market Crash: Losses in the investment strategy are cushioned by the increasing value of the protection component (the ‘airbag’). Protection 3 Year Market Recovering: As the market recovers, the gains in the investment strategy cause the NAV to rise above the Protection level (no persistent ‘cash-lock’ experienced). 4 Year New Maximum NAV: Continued gains in the investment strategy lead to a new max NAV for the 80% Protected Fund; investors benefit from the increased protection level as a result. For illustration purposes only.

How can you package these strategies for retail investors? 13 How can you package these strategies for retail investors? Description Type of fund UCITS IV Investment manager Fundlogic SAS, a member of the Morgan Stanley group Sub-investment manager Smart Investment Management Protection provider Morgan Stanley & Co. International plc, London Protection level 80% of the highest NAV reached Calculation and protection of the highest value Daily Share class currencies USD, EUR, GBP Dealing frequency Annual management charge 1.95%/0.50%

Who is involved in this fund? 14 Who is involved in this fund? Praemium (distributor) Fundlogic (investment manager) Smartim (sub investment manager) Morgan Stanley (protection provider) ASX-listed provider of international fintech and investment solutions Subsidiary of Morgan Stanley UCITS IV platform FCA-authorised subsidiary of Praemium One of the largest financial institutions A credit rating US$62.5bn US$9bn AUM US$360m AUM US$2tr client assets

15 Performance of Smartfund 80% Protected Growth Fund (4th Sept 2015 – 31st Dec 2016) Since Launch Return Volatility Peak/Trough Drawdown Protection Level Protected Growth Fund 15.56% 10.35% -5.88% 95.45% MSCI World 13.47% 12.77% -13.97% - Source: Smart Investment management Limited, Bloomberg. All figures are total return in sterling. This information has been prepared solely for information purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. No representation is made that any results/returns indicated would be achieved or that all assumptions in achieving these returns have been considered or stated. Additional information is available on request. Past performance is not necessarily indicative of future results. Price and availability are subject to change without notice. Unless stated otherwise, the material contained herein has not been based on a consideration of any individual client circumstances and as such should not be considered to be a personal recommendation. These performance figures reflect what a client might have expected to receive net, which is after the deduction of any fund management charges or adviser fees. The annual management charge of the fund is 1.95%. These figures also reflect the impact of the monthly performance cap and the cost of the protection.

16 Can your clients afford to not control the volatility of their investment?   Actual Reversed 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 16.0% -7.1% 20.4% 3.4% 18.7% 11.7% 14.2% 22.8% 23.6% -14.1% -17.8% -21.1% 30.8% 12.8% 7.6% 18.0% 7.1% -42.1% 27.0% 9.6% -7.6% 13.2% 24.1% 2.9% -2.7% -2.7% 2.9% 24.1% 13.2% -7.6% 9.6% 27.0% -42.1% 7.1% 18.0% 7.6% 12.8% 30.8% -21.1% -17.8% -14.1% 23.6% 22.8% 14.2% 11.7% 18.7% 3.4% 20.4% -7.1% 16.0% Source: Smartim, Bloomberg. Assumes investment into MSCI World. In decumulation assumes annual withdrawals of £5,000 p.a. grown by 3% inflation.

Important information 17 Important information This document is a marketing document for the Smartfund 80% Protected range of funds and is solely intended for the use of the IFA. Please note that this document should not to be forwarded to potential investors. Potential investors cannot have reliance upon the content of this material and should not treat the contents of this document as advice relating to legal, taxation, investment or any other matters. This information is provided for education purposes only and is not intended to provide legal or investment advice. The Smartfund 80% Protected Fund range will be sub funds of Fundlogic Alternatives plc, a UCITS fund which is based in Republic of Ireland. For use by professional financial advisers only. No other person should rely on, or act on any information in this document when making an investment decision. This document has not been approved for use with investors or other clients.