An investment in any of the Smartfunds carries a number of investment considerations and risks.
Here's a summary: -
Risk of partial loss of capital, market risk, currency risk and counterparty risk.
• Smartfund 80% Protected - offers 80% capital protection, therefore in extreme market conditions the value of your investment can go down by 20%.
• Morgan Stanley provides the protection component of Smartfund 80% Protected and acts as counterparty to the fund, so if Morgan Stanley becomes insolvent, the protection component may fail.
• The value of each Smartfund may be affected by various market risks including interest rate risk, inflation risk, exchange rate risk and the risk that the strategy managed by Smartim will under-perform its benchmark.
• Fundlogic SAS will seek to hedge the share classes of the funds to counteract the impact of currency fluctuations. In extreme situations the investment manager may not be successful in protecting against all exchange-rate risk, which may result in the capital protection, of Smartfund 80% Protected, being less than 80% of the NAV for the USD and EUR share classes.