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Simple and transparent smoothing

We have designed the Quilter Smoothed Funds with simplicity and transparency in mind, to help you and your clients easily understand how their pension savings are managed.

A more straightforward approach

The Quilter Smoothed Funds use a method that is straightforward and easily explained using actual market returns, avoiding complex actuarial calculations. The investment value is calculated daily, using a rolling-average smoothing process. This enables the size of the day-to-day fluctuations to your clients’ fund value to be reduced.

The chart below shows how the smoothed price (shown in blue) tracks the unsmoothed price (shown in yellow) over the long term. The smoothing process means that the value of your clients’ investments fluctuate far less than a typical investment fund.

A straightforward approach

For illustrative purposes only.

While the Quilter Smoothed Funds aim to reduce the size of the day-to-day fluctuations to the fund value, they do not provide any guarantees. The smoothing process could reduce returns in rising markets and reduce losses in falling markets.

The value of your clients' investments can fall as well as rise. Your clients may gee back less than they invested.

Smoothed from the start

For each investment your clients make into any of the Quilter Smoothed Funds, they will purchase the fund at the unsmoothed price, which is based on the value of all the underlying assets that the fund invests in.

The price is then averaged over the first six months (126 working days) until it arrives at the smoothed price. This is called the smoothing-in phase. This smoothed price is then recalculated every day on a rolling six-month basis.

Smoothed from the start

For illustrative purposes only.

A more stable investment experience

In exceptional circumstances, there may be times when the smoothed price needs to be adjusted, for example, if the smoothed price moves too far away, down or up, from the unsmoothed price. However, a distinctive feature of the Quilter Smoothed Funds is their ability to absorb short-term market volatility without significant adjustments to the smoothed price.

The Quilter Smoothed Funds have wide tolerances before any adjustment is needed. This means the funds can tolerate material fluctuations without needing to adjust their smoothed price, which could contribute to a more stable investment experience for your clients.

The wide tolerances mean the smoothed price will only need to be adjusted in exceptional circumstances. For example, had any of the Quilter Smoothed Funds been launched before the coronavirus pandemic, even the sharp market movements seen then would not have resulted in the smoothed price being adjusted.

The example above refers to simulated past performance. Past performance is not a reliable indicator of future performance.

Your next step

Let us show you how the Quilter Smoothed Funds could give your clients the confidence to remain invested and enjoy a more sustainable income in retirement.

Contact us to find out more

This communication is issued by Quilter, a trading name of Quilter Life & Pensions Limited.

Phoenix Life Limited, trading as Standard Life, is registered in England and Wales under number 1016269. Registered office at 10 Brindleyplace, Birmingham, B1 2JB. Phoenix Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The Standard Life trademark is owned by Phoenix Group Management Services Limited and is used by Quilter under licence.

Approver: Quilter November 2025

QIP 23946/34/13938