When it comes to investing, choice is key. That’s why we offer one of the broadest ranges of Smoothed Managed Funds in the market¹, giving advisers and clients the flexibility to match investments precisely to their risk appetite and goals.

Whether your clients are seeking very low risk investments, or a higher equity ratio for greater growth potential, we have a range of five multi-asset risk-rated funds available.

We’ve been in the smoothed fund market since 2005, but today, we’re taking a closer look at our two newest funds. Launched in 2023 they were added to diversify and strengthen our offering: the Extra Cautious and the Growth Plus.

Extra Cautious: for the most careful investors

The Extra Cautious Fund (Defaqto risk-rated 2) is designed for those who want to keep investment risk to a minimum. It focuses on delivering smoother, long-term growth and delivers making it ideal for clients who value peace of mind. This could be those nearing or in retirement, or those looking for a step up from cash to investing.

According to recent performance data, the Extra Cautious Fund achieved a return of 15.85% over the period 03/02/2023 to 05/02/2026, outperforming its peer group benchmark (ABI Mixed Investment 0-35% Shares) which returned 10.82%². 

Growth Plus fund: for ambitious growth seekers

At the other end of the spectrum, the Growth Plus Fund (Defaqto risk-rated 6) is built for investors who are comfortable with higher risk in pursuit of greater rewards.

It aims for long-term growth through a diversified mix of assets, while still benefiting from LV’s smoothing mechanism to reduce the impact of short-term market volatility. This fund could also benefit clients who no longer have the same risk composure as they did in previous years, including those preparing for retirement. 

Over the same period, the Growth Plus Fund delivered an impressive 28.22% return, outperforming the ABI Mixed Investment 40-85% Shares benchmark (22.92%)³.

FE risk scores: volatility in practice

Both the Extra Cautious and Growth Plus funds stand out, not only for their performance, but also for their clear positioning on the risk spectrum.

FE Risk Scores are a measure of how risky a fund is relative to the FTSE 100 index of leading UK stocks. The scores take into consideration the volatility of the portfolio and the FTSE 100 over the past three years, but more weight is given to recent performance. The FTSE 100 always has a score of 100 and cash has a score of 0.

The Extra Cautious Fund carries a risk score of just 7 and volatility of just 1.21%⁴, making it the lowest measured risk option in the LV= smoothed range. This is a compelling option for investors who may otherwise be looking to cash for reassurance in volatile times.

In contrast, the Growth Plus Fund has a risk score of 15—still significantly lower than the ABI Mixed Investment 40-85% Shares benchmark at 64— and volatility of 2.24%⁵ demonstrating how LV’s smoothing approach helps manage volatility, even in growth-oriented funds.

Whether your clients are seeking the utmost caution or aiming for higher growth, LV= offers funds that combine strong performance with carefully managed risk.

Why Choose LV= Smoothed Managed Funds?

• Breadth of choice: a comprehensive fund range for every risk profile.
• Clear risk ratings: transparent ratings help advisers match clients to the right fund.
• Smoothing advantage: our proven approach helps manage volatility and deliver a more predictable investment journey.
• Strong performance: both the Extra Cautious and Growth Plus funds have outperformed their respective benchmarks over the past two years.
• Member benefits: Smoothed fund investors are eligible for a range of member benefits such as access to GP and physio services through LV= Doctor Services, and the potential for a mutual bonus⁶.

Explore the full range of smoothed investments or learn more about our risk ratings.

This stock market related investment can rise and fall in value. This means your client is not certain to make a profit and could get back less than they invested.

Although it’s unlikely, we may, at our discretion, need to suspend the smoothing mechanism to protect our members and our business.

This could be required if the underlying daily fund price was less than 80% of the value of the smoothed price, or in other exceptional circumstances.

In the rare event we do need to take this step, the fund would typically be valued on the underlying price or, at our discretion, on a daily gradual averaged price (except ISA which would be valued on the underlying price) until smoothing is reintroduced.

LV= Doctor Services is a confidential service powered by Square Health and medical data will not be shared with LV=. LV= Doctor Services and Care Navigator are provided by third party companies. These services are not regulated by the Financial Conduct Authority or the Prudential Regulation Authority. LV= Doctor Services and Care are non-contractual and can be changed or removed at any time.

Sources

¹As at 03 March 2026

²FE fundinfo, 03/02/2023 to 05/02/2026 

³FE fundinfo, 03/02/2023 to 05/02/2026

⁴FE fundinfo, 06/02/2025

⁵FE fundinfo, 06/02/2025

⁶Clients must be invested for 12 months. Mutual bonuses are not guaranteed