It’s here, the new Aviva Smooth Managed Fund 2
Now more of your clients can now benefit from our Smoothed Funds
This information is intended for investment professionals only. It is not to be distributed to or relied on by retail clients.
In a marketplace where funds of this type are few and far between, our Smoothed Funds are designed to deliver growth over the medium to long term, employing a ‘smoothing’ process which aims to shelter your clients from some of the impact of short-term market movements.
We’re pleased to be able to offer our Smooth Managed Fund range to a wider range of clients through our Smooth Managed Fund 2, a more cautious version of the existing Smooth Managed Fund.
The new version comes with all the great benefits of the Smooth Managed Fund.
· Global and dynamic multi-asset approach to investing
· Transparent smoothing process
The new Aviva Smooth Managed Fund 2 can enhance and add real value to your offering by focusing on clients who are looking for a fund that has the potential to offer them more than deposit accounts, while aiming to provide some shelter from short-term market movements. It’s a new option appealing to a wider range of clients, that still maintains all the advantages of dealing with a familiar and highly experienced provider.
Smooth Managed Fund 2 will initially be available through Pension Portfolio on the Aviva Platform with a fund charge of 0.65% and in the Portfolio and Select Bonds at a cost of 0.46%
The Smooth Growth Rates will be 3.75% plus Bank of England Base Rate for the Pension Fund and 3% plus Base Rate of the Life Fund.
Smoothing will work in the same way as it does for Smooth Managed Fund, for example:
• The Fund price will usually increase daily in line with the Smooth Growth Rate – we call this the smoothed price.
• Every day, we compare the smoothed price with the actual value of assets within the Fund, to decide whether to apply a Fund Price Adjustment.
• If the difference between the two prices above is 6.5% or more, we will automatically adjust the smoothed price so that the difference is 1.5%
For more information about the Smooth Managed Range of funds visit our hub where we've got new content to support your client conversations, such as:
· A client facing video explaining our simple smoothing process.
· An Adviser Guide: your new one-stop-shop for information about the Smooth Managed Fund range.
This December marks 4 years since we launched the first Smooth Managed Fund! Keep an eye on the hub for full 4 year performance, and for news of the upcoming launch of Smooth Managed Fund on ISA Portfolio!
As with all funds of this type, a large fall in the market can lead to price adjustments which could cause a sharp drop in fund value.
Under exceptional circumstances, the smoothed price can be reset to equal the value of assets in the fund. This could happen if a significant number of customers leave the fund over a short period of time.
The value of an investment may go down as well as up and the outcomes are not guaranteed. The investor may not get back the original amount invested.