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Welcome to the Aviva Smooth Managed Fund

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Aviva Smooth Managed Fund


The Smooth Managed Fund is designed 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 fund invests in a broad range of global assets which can change over time as we aim to keep the investment risk in line with a medium risk profile.

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The Aviva Smooth Managed Fund offers your clients a more relaxed approach to investing. Smoothing has the potential to take some of the volatility out of 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.

It’s all in one fund, from a company with £337 billion under management. As at March 2019

Your clients' investment in the Smooth Managed Fund 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.

How would the Aviva Smooth Managed Fund have performed over the past five years? Review the pension sales aid  and bond sales aid to find out more information.

For more detail on the Smooth Managed Fund and where it is invested see the fund fact sheet  and the fund guide.

How the smoothing works

A Smooth Growth Rate is set for the fund, which is the rate at which the smoothed price will increase.

For the Pension fund, Smooth Growth Rate is equal to the Bank of England Base Rate plus 5% per year.

For the Life Fund, the Smooth Growth Rate is equal to the Bank of England Base Rate plus 4% Per year

The Smooth Managed Fund price will usually increase daily in line with the Smooth Growth Rate – we call this the smoothed price.

 
Strategic Asset Allocation at February 19 
(see latest fund factsheet for most up to date asset allocation)
UK Equities 4.36% 
Global Equities 51.15%
Global Bonds 26.99% 
Property 7.50% 
Absolute Return 5.00% 

Cash

5.00% 


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.

Fund Price Adjustment

       
       
Date Price Adjustment Fund More info 
18 Dec 2018   -5% Pension  Find out more
 30 Jul 2019 +5.4% Pension  Find out more

For the Pension fund, Smooth Growth Rate is equal to the Bank of England Base Rate plus 5% per year.

For the Life Fund, the Smooth Growth Rate is equal to the Bank of England Base Rate plus 4% Per year.

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 the Smooth Managed Fund

The unsmoothed price of the Fund - The value of assets divided by the number of units in the 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%.

Smooth Managed Historic Growth Rates
Bond
Date Historic Expected Growth Rate
11 Feb 2019 4.75%
Pension
Date Historic Expected Growth Rate

11 Dec 2017

02 Aug 2018

5.50%

5.75%


Contact us

You can find contact details for each product area in the drop-down list:

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WA03447 07/2019