Wesleyan executive shares industry insights

Wesleyan’s intermediary business is celebrating its fifth anniversary this year, marking the launch of its smoothed fund proposition into the independent advice market. The milestone arrives as advisers increasingly adopt smoothing strategies to protect clients from market swings.

Karen Blatchford, managing director of intermediary distribution at Wesleyan, said the speed at which advisers accepted the concept surprised her. Wesleyan’s mutual status and financial strength helped overcome its relatively low profile in the intermediary sector.

“Volatility is now a frequent topic with advisers,” Blatchford said. “Smoothing has become a key feature.”

That interest has grown as markets become less predictable. A survey conducted by the firm earlier this year found over 90% of advisers expect 2026 to be more volatile than the previous two years.

Smoothed funds reduce the impact of market fluctuations by averaging returns over time. For clients approaching retirement or new to investing, this method can ease concerns, especially when portfolios are visible in real time through mobile apps.

The fund, launched in 2019, was designed to address skepticism around traditional with-profits funds, which often relied on unclear mechanisms like terminal bonuses. Wesleyan’s version provides daily pricing and no hidden payouts, making it simpler for advisers to explain returns. A white paper published with consultancy the lang cat revealed that more than 60% of advisers now see smoothed funds as useful for managing risk in client portfolios.

Some advisers still hesitate, confusing modern smoothed funds with older, less transparent versions. Education efforts continue, including research from NextWealth last year that clarified differences between various smoothed products.

Investors now face more information than ever. Social media and political events amplify market noise, making it harder for clients to focus on long-term goals. Blatchford noted that while volatility has always existed, the constant visibility of portfolio changes can make it feel more intense.

“If you’re investing for the long term—five years, 10 years or more—volatility only affects you when you want to cash in or move portfolios,” she said. “But we all have instant access now. Seeing your pension drop overnight is unsettling, even if it’s temporary.”

Blatchford, who joined financial services in 1991, said platforms have been one of the most significant changes. Post-RDR, advisers gained access to more solutions in one place, simplifying portfolio management. Yet she warned that regulation and planning needs continue to grow more complex.

Artificial intelligence might help reduce the cost of serving clients. That could free advisers to spend more time on meaningful conversations. For now, the focus stays on making investing smoother as markets remain unpredictable.