Quilter is set to launch a range of smoothed funds in partnership with Standard Life later this year.
It marks the second smoothed fund partnership with Standard Life, with Fidelity launching a smoothed fund with the business last year.
The funds will be available through the Collective Retirement Account (CRA) on Quilter’s platform, and Quilter will manage the underlying investments, while Standard Life operates the funds and applies the smoothing methodology.
Advisers will be able to choose from three funds, each aligned to a different risk profile:
- Quilter Smoothed Conservative Fund (Standard Life) – for investors seeking low-risk investments
- Quilter Smoothed Balanced Fund (Standard Life) – for investors seeking low-to-medium-risk investments
- Quilter Smoothed Moderate Fund (Standard Life) – for investors seeking medium-risk investments
Each fund will invest across a diversified mix of assets, including equities, bonds, alternatives, and money market instruments such as cash, typically through third-party funds. The funds are actively managed to maintain a defined level of investment risk and are priced at 0.99%.
The funds use a smoothing mechanism based on actual market returns. Investment values are calculated daily using a rolling-average smoothing process, which helps reduce the impact of short-term market fluctuations on customers’ fund values, and ensures a smooth return for customers from the first day of their investment.
Customers will be able to withdraw up to 7.5% each year without any downward price adjustment, while they will have flexible and tax-efficient withdrawal options through the CRA.
Marcus Brookes, chief investment officer and managing director at Quilter, said: “We are delighted to be able to offer advisers a suite of smoothed funds to help their clients navigate the uncertainty that often accompanies retirement.
“The Quilter Smoothed Funds are designed to deliver a smoother investment experience, giving clients the confidence to invest and the composure to stay invested for the long-term.
“Our partnership with Standard Life has enabled us to create a genuinely differentiated offering, with unique features that enhance the overall investor experience. We’re excited about this launch and the broader suite of accumulation and decumulation multi-asset products we now provide to advisers and their clients.”
