Smoothed Investments

Smoothed Investments:

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Smoothing done differently

Our Smoothed Managed Funds are a range of multi-asset, risk-rated funds designed to grow your clients’ money over the medium to long term while providing them with a reliable, low volatility investor experience.

The funds provide an investment journey with a smoother return profile than is generally available from many multi-asset investment funds, and offers effective downside protection. This smoothed return profile makes these funds particularly attractive for investors who are:

Unsettled by volatile investment journeys
More concerned about possible losses than probable gains
Uncomfortable with the extreme ups and downs of stock market investments

Looking to avoid cliff-edge drops in fund performance
Concerned about exposing their accumulated capital to undue risk

Smoothed Managed Funds Adviser Guide

View and download our Smoothed Managed Funds adviser guide

Smoothed Managed Funds adviser guide download

How our smoothing mechanism helps to deliver a calmer investor experience

Our unique smoothing mechanism takes the average of a fund’s daily underlying price over the past 26 weeks to produce a ‘smoothed’ fund price. This process aims to reduce the stress and worry of stock market investing, and avoid sudden shocks and cliff-edge falls in investment performance.

Understanding our smoothing mechanism doesn’t need to be complicated. It’s based on what’s already happened – rather than what might happen in the future. Learn more about how our unique smoothing mechanism works.

Important information

As with any investment, there are some important things you need to know about our Smoothed Managed Fund range:

The funds within our Smoothed Managed Fund range are designed to provide long-term steady to moderate growth for at least 5 years or longer.
Our smoothing process doesn’t prevent investments from dropping in value. Smoothing will not prevent losses in longer term falling markets.
Your clients’ investments go down as well as up – they could get back less than invested.
Where a guarantee option is available, your client will need to be aware of the associated terms and charges.

Smoothing can be suspended at our discretion. This may be in exceptional conditions or if the underlying price was 80% or less of the averaged price. If smoothing was suspended the funds may need to be valued using the underlying price. For some funds, we also have discretion to use a daily gradual averaged price with an appropriate smoothing period of up to 26 weeks.
Full details are contained in the 'CFPPFM for unitised Smoothed Managed Funds business'
Full details for the LV=ISA are contained in the 'CFPPFM for unitised LV= ISA business'.

Speak to our Business Development Team, call 0800 032 8298 or email [email protected] to book an introductory meeting. Please quote your FCA number and postcode.

Reducing risk with smoothed funds

Our Smoothed Managed Funds have a track record of performing as they should during difficult market conditions. During the heightened market volatility in early 2020, our funds continued to function normally – with no unexpected price adjustments.

With a range of multi-asset, risk-rated options, our funds have been designed to deliver a low volatility investor experience for your risk-sensitive clients – typically those who are in or nearing retirement.

Smoothing – offering more stability for anxious investors

Suited to your risk-averse clients, smoothing helps to iron out the highs and lows of the market. The result: a smoothed average fund price.

Learn more about our unique smoothing mechanism

Fund management

Our Smoothed Managed Funds are multi-asset and risk-rated to specifically appeal to clients with a ‘very low’ to ‘medium’ attitude to investment risk. They are managed to our exacting mandate by Columbia Threadneedle Investments.

Optional guarantees to reduce risk

10-year guarantee period only available with the Smoothed Managed Cautious fund across LV= ISA, LV= Smoothed Pension, LV= Smoothed Bond and LV= TIP – helping to further reduce the risk for your clients.

More on guarantees in the product profiles

We commission Defaqto to carry out a Q&A due diligence review of our Smoothed Managed Funds range to offer advisers an independent evaluation of our proposition.

View and download the latest report here

Our LV= Smoothed Managed Funds wrappers

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LV= TIP

The Smoothed Managed Funds Trustee Investment Plan (LV= TIP) provides access to our smoothed funds as part of your client's SIPP or SSAS.

LV= Smoothed Bond

The onshore investment has unique features to provide long-term steady to moderate growth.

LV= ISA

Our stocks and shares ISA aims to lessen the impact of short-term market volatility on your client's investment using our unique and transparent smoothing mechanism.

LV= Smoothed Pension

With a choice from a range of multi-asset pension funds, your client can grow their money with a reliable, low-volatility investor experience.

Adviser Portal

Use our new Adviser Portal to quote and apply

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Keep up to date with our Smoothed Managed Funds range

We publish weekly macroeconomic insight videos, quarterly performance updates and a host of other webinars in our video library to offer up to date information on our Smoothed Managed Funds proposition, as well as a wealth of information on a number of retirement and investment topics.

Visit our Retirement and Investments video and webinar library here

Let's talk

0800 032 8298

9am - 5pm Mon-Fri

TextDirect: first dial 18001. We will record or monitor calls for training and audit purposes.