1. A smarter way to invest

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

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

4. …but it does not always work - 20085
…but it does not always work
Source: Smartim, Lipper 31st December 2007 to the 31st December All figures are total return in sterling.

5. 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.

6. Source: Smartim, Lipper7
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

7. 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

8. 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.

9. 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

10. 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

11. 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.

12. 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%

13. 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

14. 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.

15. 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.

16. 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.