Fund of funds range using CAR technology launched

Præmium has launched a range of UK funds using SMARTfund technology, designed to deliver transparent Customer Agreed Remuneration (CAR).

The portfolio administration service provider says its funds’ remuneration structure allows clients invested in the same fund to agree different adviser remuneration according to the level of service they receive or type of charges they prefer.

The range of five risk-based fund of funds, available under Præmium's SMARTfund brand are intended to streamline the advisory and compliance process for IFAs and their clients, says the company.

All steps of the investment process are automated by mapping the client’s risk profile, using FinaMetrica and other profiling tools, then applying a strategic asset allocation strategy, followed by a tactical investment selection by Old Broad Street Research (OSBR), it adds.

John Martin, managing director at Præmium says: "These funds enable investor portfolios to be automatically updated as the asset allocation or investment selection models change.

“Furthermore, the Authorised Unit Trust structure ensures that investors will not incur capital gains liabilities as these adjustments are made."

SMARTfunds are administered on Præmium's wrap and Separately Managed Account (SMA) platform.

Martin adds: "We have FSA authorisation for a fund which can apply different charges to each individual investor, allowing them to agree commission and fees with their adviser rather than being dictated to by the fund management industry."

Nigel Whittingham, director of OBSR, says: “The SMARTfunds offer IFAs and their clients transparency of reporting to a very detailed level, together with flexible individual pricing. This is a progressive project which provides solutions in a number of areas."

The five funds of funds, under the label of SMART funds are: defensive, cautious, balanced, growth and agressive growth funds. Minimum investment is £3,000 and there is no upper limit, according to Martin.

Præmium is looking to make the funds available through several fund supermarkets and wrap platforms but if advisers buy from the company itself, they will have access to Præmium’s online platform with the ability to record other assets.

The firm will attend roadshows to demonstrate their products. Advisers can register interest by calling 020 7562 2450.