Investing Money

The Informed SMARTfunds provide you with the knowledge that your investment is being managed by Independent experts on an ongoing basis…

  • access to a range of professionally managed portfolios by OBSR
  • unprecedented transparency to view the underlying securities within your portfolio
  • the tax benefits of investing within an Authorised Unit Trust
  • access to an up-to-date view of your portfolio via an online platform

Informed SMARTfunds

Benefits of the Informed Approach

Informed SMARTfund investors benefit from a 2-step approach.

Step 1 – Strategic Asset Allocation

Asset allocation is first assessed by the Manager at a strategic level. This strategic level asset allocation is done for each SMARTfund to reflect a particular range of assumed investor appetite for risk consistent with the stated investment objective for the SMARTfund. This first step in asset allocation ensures that the Informed Strategy SMARTfund portfolio’s risk and return profile, over the long term, consistently matches a particular appetite for risk and expectation range – a key consideration in Treating Customers Fairly.

Barrie & Hibbert, specialists in matching strategic long term asset allocation to different risk profiles, advise the Manager in relation to this strategic level asset allocation.

Barrie & Hibbert

Step 2 – Short-Term Tactical Overlay

In order to enhance returns over the long term, OBSR may include a short-term tactical overlay to the long term strategic asset allocation when providing their investment model for the SMARTfund to the Manager. This enables the Informed Strategy SMARTfunds to take advantage of shorter term shifts and trends in the market, which can enhance portfolio returns.

The tactical variation in the SMARTfund’s asset allocation will be focused on shorter term opportunities, but will not alter the risk profile of the portfolio’s mix of growth and non-growth assets, as determined by the long term strategic asset allocation. This overlay will only be used at the margin and for example would have been deployed at the start of 2009 to reduce exposure to property in favour of corporate bonds. This would be driven primarily by the desire to avoid exposure to an obvious and continuous decline in the IPD Property Index as well as the difficulty in identifying direct property funds that were not actually trading on a bid basis or are restricting redemptions.

This two step approach to asset allocation enables OBSR to enhance returns, whilst maintaining the appropriate risk profiles in the portfolio, over time.

Fund Research and Selection by OBSROBSR

OBSR’s rigorous and disciplined research and selection process, is used in the Informed Strategy SMARTfunds to ensure that, at all times, the funds which are held in the portfolios are, in OBSR’s view, the most appropriate, given the intended risk and return profile of the SMARTfunds and the current market trends.

In a nutshell, these Informed Strategy SMARTfunds are intended to provide clients with the opportunity for an investment which consistently matches their appetite for risk, while enhancing returns through tactical asset allocation and the selection of the most appropriate funds.

About OBSR

SMARTfund administration