Aviva Smooth Managed fund

Avivalovernot

Hello All,
With the Covid 19 pandemic my fund took a dip. I was told this particular fund was supposed to be resistant to fluctuations in the markets. Are Aviva responsible for the losses incurred or do I just have to take it on the chin

Linton

Avivalovernot said:

Hello All,
With the Covid 19 pandemic my fund took a dip. I was told this particular fund was supposed to be resistant to fluctuations in the markets. Are Aviva responsible for the losses incurred or do I just have to take it on the chin

It is about 2% up over the past 12 months   During the depth of the crash it fell about 16% but has now well on its way to recovery.

According to the Fund Factsheet:

The Smooth Managed Fund is designed to deliver growth over the medium to long term, employing a ‘smoothing’ process to shelter you from some of the impact of market movements. The fund invests in a broad range of global assets which changes over time as we aim to keep the investment risk in line with a moderately cautious risk profile.

So I would say it is performing broadly in line with its stated objective.

Albermarle

It is about 2% up over the past 12 months   During the depth of the crash it fell about 16% but has now well on its way to recovery.

Although I would say a 16% maximum drop is a bit high considering the objectives of the fund .

A typical low cost 40% equities multi asset fund dropped around 10% maximum , as did the Wealth Preservation Investment trusts. Also the MA funds at this risk level are around 5% up in the last 12 months and have just about fully recovered back where they were on Jan 1st .

Are Aviva responsible for the losses incurred 

No