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Catch up with the latest press releases from LV=

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LV= Enhances Flexible Guarantee Bond

Press release: 21/08/2012

LV= has enhanced its Flexible Guarantee Bond (FGB) so that investors taking one out can now purchase a guarantee of between five and ten years[1]. This guarantee ensures that at the end of the chosen term, the bond will be at least the same value as it was at the time the guarantee was purchased[2].

Previously, investors could purchase only a five year guarantee on the cautious and balanced series two fund options.

The guarantee can be purchased at outset and at any point during the lifetime of the bond. For example, if an investor took out an FGB investing £40,000, and by the fourth year their fund had grown to £45,000 they could purchase a guarantee to lock in the £5,000 growth for the chosen term. This means it is guaranteed the bond will be worth at least £45,000 at the point the guarantee term ends[2]. This gives the investor stability over the future value of the fund, while still being able to benefit from future growth.

Andy Stanmore, LV= Head of Investment Bonds said: “Our FGB is growing in popularity and we have listened to advisers on which changes would make it an even stronger offering. These improvements will help advisers tailor the guarantee more closely to their clients’ long-term investment aims, and give them greater choice around how long they can ‘lock-in’ their investment growth.”

Annual charges for purchasing a guarantee

Fund option

5 years

6 years

7 years

8 years

9 years

10 years

Cautious series 2

1.70%

0.90%

0.70%

0.50%

0.40%

0.25%

Balanced series 2

N/A

2.20

1.70%

1.30%

1.00%

0.80%

Managed growth

N/A

N/A

2.50%

2.00%

1.70%

1.50%

The guarantee charge is payable for the duration of the guarantee term and is taken monthly, at 1/12 of the annual charge

For further details on the LV= range of flexible retirement solutions, insurance and investment products go to www.LV.com/adviser

Notes

  1. Guarantee terms for the Balanced Series 2 fund range between 6 and 10 years, and for the Managed Growth fund range between 7 and 10 years.

  2. Less any withdrawals

About LV=

LV= employs over 5500 people and serves around five million customers with a range of financial products. We are the UK’s largest friendly society and a leading financial mutual.

When we started in 1843 our goal was to give financial security to more than just a privileged few and for many decades we were most commonly associated with providing a method of saving to people of modest means. Today we follow a similar purpose, helping people to protect and provide for the things they love, although on a much larger scale and through a wide range of financial services including insurance, investment and retirement products.

We offer our services direct to consumers, as well as through IFAs and brokers, and through strategic partnerships with organisations such as ASDA, Nationwide Building Society and a range of trades unions.

LVFS is authorised and regulated by the Financial Services Authority, register number 110035. LVFS is a member of the ABI, the AFM and ILAG. Registered address: County Gates, Bournemouth BH1 2NF.