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Catch up with the latest press releases from LV=

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LV= Makes Low Cost SIPP Offer Permanent

Press release: 04/04/2011

Retirement specialist LV= has made the low cost version of its SIPP, the Flexible Transitions Account (FTA), a permanent product offering. LV= launched the discounted offer in September 2010 with an original end date of 31 March 2011. The low cost FTA has already attracted £25 million of new business since launch, showing a demand from clients for initial access to a simple range of funds, with the flexibility to upgrade easily to a more sophisticated range of features and benefits as their needs change. In addition, LV='s standard FTA has seen a 25% uplift in sales against the same period last year and is on target to sell over £500m this year.

The FTA discounted product offers up to 45% off the standard annual service charge [1]. Clients can choose from 26 funds such as passive/tracker, actively managed sector funds, and risk-graded multi-asset funds [2]. For example, a customer investing in FTA using State Street’s Balanced Consensus fund could be charged just 0.93% a year (including ongoing commission at 0.5% [3].)

Ray Chinn, LV= head of pensions, comments: "We have had excellent feedback from advisers following the launch of our FTA discount, and it is encouraging to see this translate into new business. The success of the special offer confirmed our view that there is a significant market for simple, low cost pensions that clients can upgrade to more sophisticated solutions as and when required. Combining this with the use of our risk profiling technology we can now help advisers demonstrate a clear end to end process for their pensions clients whilst keeping costs competitive."


[1] Annual service charging structure for LV=’s standard and discount Flexible Transitions Account:

Amount invested

Standard Annual Fees

Discounted Annual Fees

First £75,000

0.55%

0.30%

Next £925,000

0.35%

0.30%

Any amount over £1,000,000

0.10%

0.10%

A customer investing £75,000 at outset under the discounted fee offer will pay £225 a year - a reduction of £187.50 (or 45%) on the standard fees of £412.50.

[2]

Passive/Tracker Funds (managed by SSgA)

Actively Managed Sector Funds

Risk Graded/Multi-Asset Funds

Far East Equity Tracker

LV= Pacific ex Japan Growth

LV= Managed Portfolio 3

Balanced Consensus

LV= European ex UK Growth

LV= Managed Portfolio 4

European Equity Tracker

LV= Japan Growth

LV= Managed Portfolio 5

Global Equity Tracker

LV= UK Money Market

LV= Managed Portfolio 6

Japanese Equity Tracker

LV= UK Corporate Bond

LV= Managed Portfolio 7

North American Equity Tracker

LV= UK Growth

LV= Balanced Managed

UK Equity Tracker

LV= UK Property

LV= Diversified Income

UK Conventional Gilts All Stocks Index

LV= UK Equity Income

LV= Stockmarket Managed

LV= Fixed Interest

Cirilium Cautious

LV= UK Index Linked

Cirilium Dynamic

Cirilium Moderate

[3]

This is based on the Total Expenses Ratio (TER) for the Balanced Consensus fund of 0.13% a year, plus the discounted annual fee of 0.30% a year, and ongoing fund based commission of 0.5% a year.



About LV=

LV= is a registered trademark of Liverpool Victoria Friendly Society Limited (LVFS) and a trading style of the Liverpool Victoria group of companies.

LV= employs around 4,500 people, serves over four million customers and members, and manages around £8.0bn (as at 31 December 2010) on their behalf, via LV= Asset Management (LVAM). We are also the UK's largest friendly society and a leading mutual financial services provider. www.LVAM.co.uk.

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. www.LV.com