Quilter has launched a range of smoothed funds in partnership with Standard Life, targeting investors who are approaching or already in retirement and are seeking greater stability and confidence in their outcomes.

The Quilter Smoothed Funds will be available through the collective retirement account (CRA) on Quilter’s platform.

Under the partnership, Quilter will manage the underlying investments, while Standard Life will operate the funds and apply its smoothing methodology.

The range comprises three options aligned with different risk appetites: the Quilter Smoothed Conservative Fund (Standard Life) for low-risk investors, the Quilter Smoothed Balanced Fund (Standard Life) for those seeking low-to-medium risk, and the Quilter Smoothed Moderate Fund (Standard Life) for medium-risk profiles.

Each fund invests in a diversified mix of assets, including equities, bonds, alternatives and money market instruments such as cash, typically via third-party funds.

The portfolios are actively managed to maintain a defined level of risk and are priced at 0.99 per cent.

The funds use a smoothing mechanism based on actual market returns, with daily valuations calculated using a rolling-average process.

This approach is designed to dampen the effects of short-term market volatility and provide a steadier investment journey from the outset.

Indeed, a key feature of the range is a regular withdrawal allowance, enabling investors to withdraw up to 7.5 per cent each year without triggering a downward price adjustment.

When combined with the flexible and tax-efficient withdrawal options available through the CRA, this is intended to support the delivery of a sustainable income in retirement.

Quilter chief investment officer and managing director, Marcus Brookes, said the new funds were designed to help advisers support clients through the "uncertainty" that can characterise retirement planning.

He explained that the aim was to deliver a smoother investment experience that encourages confidence and helps investors remain committed for the long term.

Brookes added that working with Standard Life had enabled Quilter to create a differentiated proposition, with features designed to enhance outcomes across both accumulation and decumulation.

Standard Life managing director for BPA and individual retirement, Claire Altman, noted that, as many savers look for a balance between growth and stability, smoothed funds can help individuals feel more in control of their financial future as they move towards retirement.

"They help individuals navigate uncertainty and feel more in control of their financial future, which is exactly what advisers are there to support,” she added.

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