The Smoothed Return Pension Fund is designed for those clients who want to soften some of the effects of market volatility - especially those in the ‘Retirement Risk Zone’.
 

These are the critical 5-10 years before and after your clients choose to retire - and where their pension savings are arguably at their most vulnerable. This is because any significant market movements at this stage could have a profound effect on their expected retirement lifestyle.

An introduction to the Retirement Risk Zone

Watch our short video with Andy Brown, our Head of Fund Solutions, to understand the concept of the Retirement Risk Zone.

Target market - behavioural characteristics

The Smoothed Return Pension Fund could be suitable for clients who show these behaviours.

Are uncomfortable with financial uncertainty and don’t want to expose their pension savings to undue risk
Can accept a moderate loss on their investment
Want reassurance that the impact of day-to-day market ups and downs will be limited
May not have the mindset to accept short-term setbacks
Want a reasonable expectation of steady returns
Prefer predictability over uncertainty

Helping you navigate the Retirement Risk Zone
 

When your clients are in the Retirement Risk Zone, managing the effects of market volatility will be key to achieving their retirement income ambitions. Here’s how the Smoothed Return Pension Fund can help, wherever they are on their journey.

 

The objective
You’ll want to stabilise your client’s financial position as they prepare for retirement. This means preservation and optimisation of their pension savings come into focus.

The risk
A sudden market downturn could have a significant impact on even the best-laid withdrawal plans - potentially causing your client to delay their retirement or adjust their lifestyle plans.

How the Smoothed Return Pension Fund can help
To mitigate the impact of market volatility on an overall retirement plan, you could consider investing some of your client’s pension savings into our smoothed fund as part of their overall investment strategy. This can help to cushion some of the daily ups and downs of the stock market and offer some protection against the impact of market shocks as they get ready to move into decumulation.

The objective
When in retirement, you’ll want to make sure your clients can enjoy a stable, reliable income that will last for as long as they need it to.

The risk
A sudden market downturn could mean your client has to reduce their withdrawals, or their pension savings will be depleted at a faster rate.

How the Smoothed Return Pension Fund can help
When your client is drawing an income or making lump sum withdrawals, mitigating the impact of market volatility on an overall retirement plan can be essential. By investing some of their pension savings into our smoothed fund as part of their overall investment strategy, you can
help to cushion some of the daily ups and downs of the stock market and offer some protection against the impact of market shocks as they draw a regular income.

Key documents on client suitability

Target Market and Fund Governance

Find out more about who the fund is designed for and how it’s governed.

View the Target Market and Fund Governance guide

Risk profiling matrix

See how the fund has been mapped by leading independent risk profilers.

View the Risk Profiling Matrix

Adviser guide

Find out more about the concept of smoothing and how the fund could benefit your clients.

View the adviser guide

Take a closer look at the Smoothed Return Pension Fund

Explore the detail, download key documents and ask us your burning questions.

  • Our Smoothed Return Pension Fund

    See what our Smoothed Return Pension fund can offer your clients.

  • How do I invest in the fund?

    Discover how to get started and hear more about our partnership with Fidelity International.

  • Why now for smoothed funds?

    Understand why you should consider smoothed funds - and the value they can bring during uncertain times.

Common questions answered

If you have a question about our Smoothed Return Pension Fund, we’ve covered all the key areas in our FAQs

Money invested is at risk. The value of your clients’ Fund could fall, sometimes frequently or significantly. It isn’t guaranteed and can go down as well as up and they could get back less than they invested. 

The information on this site is for qualified financial advisers and must not be relied on by anyone else. If you are not an adviser please go to our customer website for more information about our products and services.