Investment, protection and retirement specialist LV= highlights the role of smoothing in supporting advisers and their clients as new research reveals heightened concerns around market volatility and its impact on long‑term savings.
According to LV’s latest Wealth and Wellbeing research*, 17% of active investors are worried about the effect of stock market volatility on their investments or pensions. More broadly, 74% of people say their day‑to‑day financial decisions are influenced by market movements and geopolitical events, reinforcing the behavioural pressures advisers face during periods of uncertainty.
With more clients reacting to short‑term market events, advisers are increasingly looking for tools that help maintain discipline and keep long‑term plans on track. Investment approaches that aim to smooth the investment journey can play a valuable role here, offering a steadier experience that helps reduce the likelihood of shorter-term decision‑making.
Smoothed investment solutions, such as the LV= Smoothed Managed Fund range, are designed to help address these concerns by providing risk‑rated options that aim to deliver a more consistent investment experience – something that is particularly important for active investors who are more sensitive to volatility.
LV’s Smoothed Managed Fund range spans risk ratings from 2 to 6, supporting advisers in constructing diversified portfolios for clients with differing attitudes to risk, from those prioritising capital stability and long-term growth with less day-to-day turbulence. Since launch, the funds have navigated volatile market environments, applying an established smoothing mechanism to manage short-term fluctuations while maintaining a clear focus on long-term outcomes.
At the cautious end of the range, the Extra Cautious Fund (Defaqto Risk Rating 2) targets greater stability for clients who may otherwise default to holding cash. Conversely, the Growth Plus Fund (Defaqto Risk Rating 6) is designed for clients seeking higher long-term growth while benefiting from a smoother investment experience. The Growth Plus Fund** has outperformed benchmarks over the medium term while delivering significantly lower volatility for investors.
Sarah Hills, LV= Wealth Proposition Director, said:
“Market volatility continues to influence how people feel about their investments, and these emotions often shape financial decisions. Advisers are working hard to help clients stay focused on long‑term outcomes, and investment solutions with built‑in consistency can play an important role in those conversations.
“The combination of LV’s Extra Cautious and Growth Plus funds enables advisers to support clients across the full risk spectrum, from those seeking stability beyond cash to those targeting long‑term growth, while delivering a more consistent and smoother investment experience through varying market conditions.
“As advisers navigate evolving client expectations and an increasingly unpredictable market backdrop, smoothing remains a relevant approach for supporting long‑term investment behaviours. It can help more cautious clients reduce the long‑term impact of holding cash, while allowing growth‑oriented clients to pursue stronger returns with lower volatility and improved behavioural resilience through market cycles.”
Visit https://lvadviser.com/smoothed-investments find out more about LV’s full range of Smoothed Managed Funds.
Capital at risk
