Introducing Aviva's Smooth Managed Funds: a steadier path through market uncertainty

Alan Thompson, Investment Development Manager

Since the start of the year, global markets have felt anything but smooth. We've seen persistent inflation shocks, volatile rate expectations, geopolitical flashpoints, and the added uncertainty of Trump-era trade rhetoric resurfacing, all weighing heavily on investor confidence.

This backdrop is unsettling for clients. Many are concerned about the long-term effects on their financial plans. If your portfolio drops by 20%, you need a 25% increase to return to its original value. The commonly used 4% rule comes into play for those relying on a regular income; you will have a 24% drop in your portfolio and need a 32% increase to break even. In such times, the true value of smoother, more predictable investment experiences becomes clear.

Introducing the Smooth Managed Fund range

The SMF range is not for every client, but for those who can't afford to ride the full ups and downs of market sentiment or want greater peace of mind. They're not trying to shoot the lights out; they're trying to deliver consistency. And in a world where the definition of 'normal markets' keeps shifting, that's a quality many clients now value more than ever.

We can't predict market movements, but we can help cushion the downside.

SMF Range vs Sector (Pension)

Source: Morningstar Direct

Past performance is not a guide to the future, any product charges and adviser fees would reduce the amount received.

How could SMF help?

Our Smooth Managed Fund range can add value across multiple product wrappers. Smoothing can lessen the emotional effects of market volatility by offering a more stable return profile, which encourages long-term investment disciplines. For individuals drawing an income, it can counteract volatility drag and reduce sequence risk by softening the impact of extreme market fluctuations, which we have seen from January to April this year.

While smoothing is effective, it doesn’t eliminate risk; instead, it redistributes volatility over time rather than removing it entirely.