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Smooth Managed Fund now available for bond customers

Mar 12, 2019, 15:36 PM
Making smoothed investment more accessible 
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Our popular Smooth Managed Fund, previously only available via our Pension Portfolio SIPP, is now also available for bond customers.

Following the successful launch of the fund in December 2017, it has now been added to both the Portfolio and Select Bonds – and is available for both switches and new business applications.

Roger Marsden, Managing Director of Savings, said: “The Smooth Managed Fund was launched in response to adviser and customer demands for investments that have scope to deliver better than cash returns – but with a smoother investment experience than usually associated with more traditional investments.”

“We’re continually looking at ways that we can adapt our range of investments to meet the diverse needs of customers, particularly in uncertain and volatile markets. By adding the Smooth Managed Fund to our bond, it becomes available to a wider number of people who want to invest in a smoothed investment outside of their pension.”

About the fund

The fund invests in a broad range of global assets which can change over time, aiming to keep the investment risk in line with a moderately cautious risk profile. 

The Smooth Growth Rate for the bond Smooth Managed Fund is 4% plus the Bank of England Base Rate. This is 1% lower than the pension fund, to reflect the fact that the bond fund growth is net of basic rate tax.

The smoothing parameters are the same as the pension fund. The Smooth Price will be adjusted if the gap between the Smooth Price and the unsmoothed price is 6.5% or more on any one day. The gap after the adjustment will be 1.5%.

Mr Marsden added: “The Smooth Managed Fund has a moderately cautious risk profile, but its innovative smoothing technique reduces day-to-day price changes to provide more stable returns over the medium to long term.

“This is particularly useful for customers taking an income where the sequence of returns in a volatile market can have a big impact on both the capital value and the amount of income it produces.”

The value of investments in the SMF can go down as well as up. Investors may get back less than has been paid in.

Find out more

For more information about the bond Smooth Managed Fund, please visit the Smooth Managed Fund page

IN88021 03/2019

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