The market for smoothed funds is poised for growth.

Smoothed funds are recommended by 35% of financial advisers for new client money, placing them behind multi-asset funds and discretionary model portfolio services (MPS) and ahead of annuities. They are most often recommended for cautious or low-risk clients, designed to protect against sudden market losses.

Smoothed funds are a bit ‘marmite’. Financial advisers who use them believe they play an important role in client portfolios. Those that don’t are concerned about transparency, higher costs and level of client understanding. While M&G’s PruFund dominates the sector, new entrants and propositional features have introduced more choice.

At NextWealth, we have launched a new report comparing propositions for providers of smoothed funds, exploring how financial advisers use them in client portfolios and why non-users don’t recommend them.

To download a copy of the sample, complete the form on the right.