Smooth Managed Fund Price Adjustment
Information about price changes to our Smooth Managed Fund range
On the 10 October 2025, the price of the Smooth Managed Fund/ISA S14/15 was adjusted upwards by 5.37% to 149.31p.
The price of the Life Smooth Managed Fund S16 was adjusted upwards by 5.48% to 109.59p.
What’s driven the upward price adjustment
The upward price adjustment on the Smooth Managed Fund comes amid a complex but rewarding year for global assets, which saw many asset classes reach all-time highs in the second half of the year.
Market Drivers
With its global, multi-asset approach to investing, the Smooth Managed Fund has captured these strong returns in 2025 which has been reflected in an upward adjustment in its price. This comes following several years of strong returns for global investors.
The Smooth Managed Funds invest in a combination of global equities, sovereign and investment grade bonds, growth-orientated fixed income (such as Emerging Market Debt and High Yield) and Alternatives (such as Property and Absolute Return). Despite a turbulent second quarter - driven by a major overhaul of global tariff policy – an array of factors including strong corporate earnings and robust macroeconomic data have combined to provide strong performance from most asset classes. Equities have delivered especially strong returns, particularly in the UK, Europe, and Emerging Markets. Although US equities have also performed well, a weak dollar has served as a headwind for UK-based investors.
The asset allocation of the Smooth Managed Fund was updated in 2025 to increase diversification and adopt a more global approach, which has supported strong performance. Further, the Fund uses short-term, tactical asset allocation to capture opportunities in market and defend on the downside. Tactical asset allocation has been additive this year, supporting the strong performance of the strategy.
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Just a reminder - what is a Fund Price Adjustment?
The price of the Smooth Managed Fund increases daily by the Smooth Growth Rate.
The price of the Smooth Managed Fund increases daily by the Smooth Growth Rate, which is equal to the BoE Base Rate plus 5% for Pension/ISA and 4% for Bond per annum (capped at 10%pa and 9%pa respectively).
Each day, the price of the Smooth Managed Fund is compared to the value of the underlying assets i.e. the Unsmoothed price. If the difference between the two prices is greater than 6.5% an adjustment is made to bring the Smooth Managed Fund within 1.5% of the Unsmoothed price.
Therefore, when markets perform poorly, this can trigger a downward Fund Price Adjustment. Equally, in an environment where markets are performing well we may see an upward Fund Price Adjustment.
This means that over a long-term time horizon, investors will receive similar performance to the underlying holdings. Crucially, however, the client's investment journey will be much smoother because they are not exposed to daily price movements.
Find out more
For more information about our Smooth Managed Funds please get in touch in the usual way or visit our Smooth Managed Funds page