Smooth Managed Funds
Helping to shelter your clients from market volatility
The Smooth Managed Funds aim to deliver growth over the medium to long term, employing a ‘smoothing’ process to shelter your clients from some of the impact of adverse market movements.
The funds are available through Pension Portfolio and ISA Portfolio on the Aviva Platform, and Select Investment Bond. We offer a choice of Smooth Managed Funds for different attitudes towards risk and reward:
Smooth Managed Fund: Medium Risk
Smooth Managed Fund 2: Low to medium Risk
Transcript
How can you provide your clients with more certainty, during uncertain times? Help shelter them from market ups and downs? And aim to deliver growth, over the medium to long term?
Aviva Smooth Managed Funds can do just that.
Designed for different attitudes to risk and reward, they use a transparent smoothing mechanism and actively managed global Multi-asset fund.
Your clients’ investment can go down as well as up in value and they may get back less than they invested.
Fund details
Why Smooth Managed Funds?
Aviva Smooth Managed Funds offer your clients a more relaxed approach to investing while aiming to smooth some of the short-term ups and downs of direct stock market investments.
Risk can be spread by diversifying, through investing in different assets from across the world. Professional investment managers do the hard work, so your clients can feel relaxed about investing.
Your clients' investment in the Smooth Managed Funds can go down as well as up in value and they may get back less than they invested. In particular, a large fall in the market can lead to a price adjustment which could cause a sharp drop in the fund value.
Under exceptional circumstances, the smoothed price can be reset to equal the price of assets in the fund. This could happen if a significant number of customers leave the fund over a short period of time.
Past performance
For more detail on the Smooth Managed Funds and where they are invested see the fund guide or the fund fact sheets:
Pension (S14) Smooth Managed Fund fact sheet (PDF)
Pension (S14) Smooth Managed Fund 2 fact sheet (PDF)
Life (S4) Smooth Managed Fund fact sheet (PDF)
Life (S4) Smooth Managed Fund 2 fact sheet (PDF)
ISA (S15) Smooth Managed Fund fact sheet (PDF)
ISA (S15) Smooth Managed Fund 2 fact sheet (PDF)
Facts and figures
How the smoothing works
A Smooth Growth Rate is set for each fund, which is the rate at which the smoothed price will increase.
The Pension and ISA Smooth Managed Fund Smooth Growth Rate is equal to the Bank of England Base Rate plus 5% per year.
The Pension and ISA Smooth Managed Fund 2 Smooth Growth Rate is equal to the Bank of England Base Rate plus 3.75% per year.
The Life Smooth Managed Fund Smooth Growth Rate is equal to the Bank of England Base Rate plus 4% per year.
The Life Smooth Managed Fund 2 Smooth Growth Rate is equal to the Bank of England Base Rate plus 3% per year.
The price of each Smooth Managed Fund will usually increase daily in line with the Smooth Growth Rate (less charges for the Pension and ISA funds)– we call this the smoothed price.
| Strategic Asset Allocation (see latest fund factsheets for most up to date asset allocation) | Smooth Managed Fund (when last changed at October 2020) | Smooth Managed Fund 2 (as at June 2021) |
|---|---|---|
| UK Equities | 4.36% | 2.30% |
| Global Equities | 51.15% | 40.52% |
| Global Bonds | 26.99% | 36.28% |
| Property | 7.50% | 5.00% |
| Absolute Return | 5.00% | 5.00% |
Cash | 5.00% | 5.00% |
| UK Corporate Bonds | 0.00% | 5.90% |
Smooth Managed Historic Growth Rates* | ||||
|---|---|---|---|---|
| Pension and ISA Smooth Managed Fund (Launched 11/12/2017) | Pension and ISA Smooth Managed Fund 2 (Launched 30/06/2021) | Life Smooth Managed Fund (Launched 18/02/2019) | Life Smooth Managed Fund 2 (Launched 30/06/2021) | |
| 11 Dec 2017 | 5.50% | N/A | N/A | N/A |
| 02 Aug 2018 | 5.75% | N/A | N/A | N/A |
| 11 March 2020 | 5.25% | N/A | 4.25% | N/A |
| 19 March 2020 | 5.10% | N/A | 4.10% | N/A |
| 16 December 2021 | 5.25% | 4.00% | 4.25% | 3.25% |
| 3 February 2022 | 5.50% | 4.25% | 4.50% | 3.50% |
| 17 March 2022 | 5.75% | 4.50% | 4.75% | 3.75% |
| 05 May 2022 | 6.00% | 4.75% | 5.00% | 4.00% |
| 16 June 2022 | 6.25% | 5.00% | 5.25% | 4.25% |
| 04 August 2022 | 6.75% | 5.50% | 5.75% | 4.75% |
| 22 September 2022 | 7.25% | 6.00% | 6.25% | 5.25% |
| 3 November 2022 | 8.00% | 6.75% | 7.00% | 6.00% |
| 15 December 2022 | 8.50% | 7.25% | 7.50% | 6.50% |
| 2 February 2023 | 9.00% | 7.75% | 8.00% | 7.00% |
| 23 March 2023 | 9.25% | 8.00% | 8.25% | 7.25% |
| 11 May 2023 | 9.50% | 8.25% | 8.50% | 7.50% |
| 22 June 2023 | 10.00% | 8.75% | 9.00% | 8.00% |
| *All Smooth Growth Rates are shown before charges. The fund is not guaranteed to grow in line with the Smooth Growth Rate and may return more or less than this over any time period. | ||||
Client suitability
Who may the Smooth Managed Fund be suitable for?
- Clients who are prepared to take a medium degree of risk with their investment in return for the prospect of improving longer term performance
- Clients who are comfortable that their investment may rise and fall in value over time and they may get back less than they invested
- Clients who prefer to spread risk by investing in a wide range of assets and see their money typically be invested more in shares and/or property than fixed interest assets
- Clients who accept that having a broad spread of assets may limit the potential returns but should help to minimise the fluctuations
- Clients who would be prepared to stay invested in the fund for at least 5 years.
Who may the Smooth Managed Fund 2 be suitable for?
- Clients who are prepared to take a low to moderate amount of risk with their investment in return for the prospect of improving longer term performance.
- Clients who are comfortable that their investment may rise and fall in value over time and they may get back less than they invested
- Clients who prefer to spread risk by investing in a wide range of assets and see their money typically be invested more in shares and/or property than fixed interest assets
- Clients who accept that having a broad spread of assets may limit the potential returns but should help to minimise the fluctuations
- Clients who would be prepared to stay invested in the fund for at least 5 years.
Fund price adjustments
Fund price adjustments are applied to the Smooth Managed Funds when the smoothed price is at least 6.5% higher or lower than the unsmoothed price. The adjusted smoothed price will be 1.5% higher or lower than the unsmoothed price.
Two prices are used, on a daily basis, to determine whether or not a Fund Price Adjustment needs to be applied:
- The smoothed price of the Fund - This is the price that you pay to buy and sell units in a Smooth Managed Fund
- The unsmoothed price of the Fund - The value of assets divided by the number of units in a Smooth Managed Fund
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%.
| Pension and ISA Smooth Managed Fund | Fund Price Adjustment |
| 19 December 2018 | -5.00% |
| 30 July 2019 | +5.40% |
| 09 March 2020 | -6.72% |
| 12 March 2020 | -7.10% |
| 28 May 2020 | +6.20% |
| 17 November 2020 | +5.40% |
| 31 August 2021 | +5.58% |
| 09 March 2022 | -4.80% |
| 03 October 2022 | -5.48% |
| 23 October 2023 | -5.24% Find out more |
| Pension and ISA Smooth Managed Fund 2 | Fund Price Adjustment |
| 14 June 2022 | -5.28% |
| 7 July 2023 | -4.78% Find out more |
| Life Smooth Managed Fund | Fund Price Adjustment |
| 10 March 2020 | -5.20% |
| 12 March 2020 | -4.80% |
| 28 May 2020 | +5.30% |
| 08 December 2020 | +5.70% |
| 03 October 2022 | -5.38% |
| 23 October 2023 | -4.87% Find out more |
| Life Smooth Managed Fund 2 | Fund Price Adjustment |
| 17 June 2022 | -5.56% |
| 18 August 2023 | -5.03% Find out more |
Key documents and resources
Fund Information
Fund performance, factsheet and charting tool
Aviva Insured Funds Smooth Managed Fund S15 KID
Aviva Insured Funds Smooth Managed Fund 2 S15 KID
Aviva Life Select Investment Bond KID
Aviva Smooth Managed Fund S4 UIOD
Aviva Smooth Managed Fund 2 S4 UIOD
Performance
Pension Smooth Managed Fund S14 fact sheet (PDF)
Life Smooth Managed Fund S4 fact sheet (PDF)
ISA Smooth Managed Fund S15 fact sheet (PDF)
Pension Smooth Managed Fund 2 S14 fact sheet (PDF)
Life Smooth Managed Fund 2 S4 fact sheet (PDF)
ISA Smooth Managed Fund 2 S15 fact sheet (PDF)
Pension Smooth Managed Fund 2 S14 Sales Aid (PDF)
Investment Content
Webinars