Fund options

Your client can choose one of three ready-made fund options to best suit their investment needs and attitude to risk.

The Flexible Guarantee Bond invests in the LV= with-profits fund.

Each fund option invests in a mix of stocks and shares, commercial property, fixed interest investments and cash. Each fund option is actively managed by a team of investment professionals with the aim of achieving the best possible returns.

The asset mix diagrams below are benchmark figures. To see the current asset mix for each fund, please visit our performance and asset allocation page or download the latest performance PDF.

Cautious Series 2

Cautious fund pie chart showing 20% equity, 10% property and 70% fixed interest.

This fund option is designed to provide the potential for steady growth. It invests mainly in fixed interest securities, with the balance in equities and property.

This is the lowest risk fund option under our bond and therefore offers the lowest growth potential.

Balanced Series 2

A pie chart showing 35% equity, 15% property and 50% fixed interest.

This fund option is designed to provide the potential for moderate growth. Around half is invested in fixed interest securities, with the balance in equities and property.

We believe this fund option is higher risk than the Cautious Series 2 fund option, but lower risk than the Managed Growth.

Managed Growth

Managed fund pie chart showing 50% equity, 15% property and 35% fixed interest

This fund option is designed to provide the potential for higher growth than the two other fund options. But of course, this means that it’s the most risky. Around two thirds of the fund is invested in equity and property, with the balance in fixed interest securities.

And to make sure your client’s bond keeps pace with their life and their changing needs, they can switch from one fund option to another at any time they like. They can have up to three free fund switches each year. After that, the cost is just £25 a time.