Download While investments always carry a certain amount of risk, the iStar

How it Works
iGuard has employed the services of analytical investment experts Mu Capital
who, with over 30 years’ experience in the structured product market place,
are able to select the very best structured products available globally.
While investments always carry a certain amount of risk, the iStar range of protected
models are structured to help give you peace of mind. With the iStar range you can sacrifice
a part of your return in order to protect your investments against a certain amount of
downside risk.
As an example, an iStar model could potentially be structured so that it returns 100% of
your capital as long as its benchmark (.eg. the FTSE 100) has dropped no more than 50%
at the point of maturity. Should the FTSE 100 be higher than when you invested you would
receive your initial capital plus a pre-agreed return as stated in the model’s mandate. You
would receive a ‘soft’ capital guarantee* in exchange for a defined return for positive
performance (regardless of the amount of positive performance).
*Please note: if this soft capital guarantee is breached, your capital is at risk.
The iStar range of structured models consists of 3 risk and goal-driven investment mandates:
Each iStar model holds structured products specifically chosen to match the financial goals of the
investor and each offering downside protection. These products lend money to an issuer (usually a
bank) for a defined period of time, and are structured to repay a defined amount to the investor at
the end of their term based upon the performance of one or more regulated and recognised underlying
indices (i.e. the S&P500 or the Hang Seng). These indices will be mostly, but not exclusively, equity
benchmarks, subject to daily liquidity and trading.
Mu Capital undertakes independent global research to make sure Guardian
is able to provide best-of-breed structured options available at any one time.
Thanks to constantly updated market research and a rigorous selection
procedure, each mandate will have variations on terms and returns as dictated
by the banks and financial institutions that provide the products.
Investment Manager
All of the portfolios in the iGuard suite of tailored investment solutions are
actively managed by London-based Smart Investment Management (SIM).
With over 40 years’ experience in world-class Discretionary Fund Management,
SIM is the ideal partner to manage these portfolios. Your portfolio will be
held and managed on Praemium’s investment platform, allowing you quick
and easy access to your portfolio wherever you are in the world.
SIM is a wholly owned subsidiary of Praemium Limited, which is authorised
and regulated by the Financial Conduct Authority (FCA) and is the entity
providing the discretionary management services for the iGuard suite of
tailored investment solutions.
IStar Growth
IStar Income
IStar Protected
Portfolio Strategy: For investors with a medium to high tolerance
for risk.
Portfolio Strategy: Designed for investors with a balanced tolerance
for risk.
Portfolio Strategy: Designed for investors seeking a defined income
alongside a higher level of capital protection; suitable for individuals
with a cautious/balanced approach towards risk.
This portfolio may be suitable if you have a specific goal or time
frame and are looking for returns similar to direct equities investment
without the associated risks and volatility.
This portfolio may be suitable if your primary objective is to generate
an attractive level of income from your investment, significantly in
excess of prevailing interest rates without the risks associated with
a direct investment in equity markets.
Investors in this portfolio believe equity markets might be volatile
in the medium to long term but wish to achieve a reliable aboveaverage return even if markets perform sluggishly over that period.
The portfolio offers exposure to ‘best of breed’ structured products
and is appropriate for those who understand and accept the risks
associated with structured investments.
Target return: 7%- 14%
Term: Maximum term of 5-6 years although investment may redeem
early paying a predefined return provided certain criteria are met.
Counterparties: We only select structured products from banks
that are rated as investment grade, meaning they are defined as
relatively low risk by major ratings agencies and other market
metrics.
Capital protection: The securities bought in this portfolio protect
investors’ capital provided the indices selected by the managers
have not fallen by more than 40% or more by the end of the term.
Key Risks: This portfolio is to be considered as an alternative to
balanced/aggressive portfolios over a period of around five to six
years. It targets, but does not guarantee, a specific return on capital
and should not be seen as an alternative to a cash deposit.
Investors in this portfolio believe equity markets might be volatile
in the medium to long term but wish to achieve a reliable aboveaverage return even if markets perform sluggishly over that period.
This portfolio may be suitable if you are looking for returns higher
than inflation but with minimal risk to capital. If you invest in this
portfolio your primary consideration is protecting capital and you
understand that there is a corresponding cost to investment
performance in order to benefit from protection against falls.
The portfolio offers exposure to ‘best of breed’ structured products
and is appropriate for those who understand and accept the risks
associated with structured investments.
The portfolio offers exposure to ‘best of breed’ structured products
and may be suitable if you understand and accepts the risks
associated with structured investments. This portfolio will invest
primarily in capital protected securities targeting a defined income
and capital protection in the vast majority of market scenarios.
Target return: 6% -12%
Target return: 4%- 8%
Term: Maximum term of 5-6 years although investment may redeem
early paying a predefined return provided certain criteria are met.
Term: Maximum term of 5-6 years although investment may redeem
early paying a predefined return provided certain criteria are met.
Counterparties: We only select structured products from banks
that are rated as investment grade, meaning they are defined as
relatively low risk by major ratings agencies and other market
metrics.
Counterparties: We only select structured products from banks
that are rated as investment grade, meaning they are defined as
relatively low risk by major ratings agencies and other market
metrics.
Capital protection: The securities bought in this portfolio protect
investors’ capital provided the indices selected by the managers
have not fallen by more than 40% or more by the end of the term.
Capital protection: 95% - 100% capital protection over a five-year
period, subject to counterparty risk.
Annual Management Charge: 1.18%
Key Risks: This portfolio is to be considered as an alternative to
balanced portfolios over a period of around five to six years. It
targets, but does not guarantee a specific return on capital and
should not be seen as an alternative to a cash deposit.
Launch date: 1 December 2013
Annual Management Charge: 1.18%
Key Risks: This portfolio is to be considered as an alternative to
cautious/balanced portfolios over a period of around five to six years.
It targets, but does not guarantee a specific return on capital and
should not be seen as an alternative to a cash deposit.
Annual Management Charge: 1.18%
Launch date: 1 December 2013
Launch date: 1 December 2013
Important Information
The key risks in this portfolio are a significant fall in global
markets over a protracted period or the financial collapse of
a structured product counterparty selected by the investment
manager.
An investor in this portfolio should be aware they will lose
money if one or more of the underlying markets fall dramatically
at the end date of the investment term. The investor will also
understand that they are assuming the credit risk of investment
grade issuers, currently rated BB and above.