Smart Investment Management, the investment arm of Praemium, has launched Ucits versions of its Smartfund 80% Protected range for the UK market.
Previously the risk-graded multi-asset range was available for international advisers, but a Ucits version of the funds with clean share classes has now been launched. The funds will have an ongoing charge of 0.5 per cent.
Morgan Stanley offers the protection on the range of funds, which give capital protection of 80 per cent of the highest fund value achieved.
Rebecca Murphy, Praemium director of sales and marketing, says: “In this environment the desire to minimise risk is a key determinant of clients’ investment decisions. In order to protect capital, many clients end up opting for asset classes traditionally considered low risk, like fixed interest or cash.
“At the very least this may limit their ability to meet their investment objectives, at worst it will expose them to a level of risk they don’t expect and are not comfortable with.”
For the international share class of the fund, which has a 1.95 per cent charge, the Smartfund 80% protected Growth fund has returned 1.3 per cent since launch in September last year, compared to a 4.2 per cent loss for the MSCI World sector.