LV= and Embark Group (Embark) are at advanced stages in the development of launching a new LV= branded service that will enable advisers to trade the LV= Smoothed Managed Investment Fund (SMF)* range on Embark’s award-winning platform technology.
Expected to be ready for launch in the second half of 2022, this new service option from LV= will be accessible through an upgraded online adviser portal, integrated into one service alongside LV=’s current SIPP. It will also support direct access for advisers’ customers available through LV=’s new digital ‘My LV=’ portal.
As an LV= branded service, advisers will benefit from Embark’s full investment transactional functionality with a choice of SIPP, ISA and General Investment Account wrappers, enabling easy access to investing into the Smoothed Managed Funds range alongside their full range of fund options.
“In 2021 LV= saw a doubling of inflows to our range of Smoothed Managed Funds (SMF). Advisers and customers are attracted by their defence against market volatility coupled with attractive investment returns – especially appreciated by advisers’ cautious mass affluent clients. To further enhance the appeal of SMF, we recognise that many advisers would prefer to be able to access them using full platform and digital trading technology.
“Our partnership with Embark will make that a reality later this year, which will include a wider range of SMF funds, launching later this year. The partnership will also enable us to develop modelled portfolio options, focussed on customer transition to retirement and drawdown for adviser consideration and adoption.
“This is one of a number of investment initiatives we have been developing the last 12 months. We’re on a mission to demonstrate how strongly-performing Smoothed Managed Funds, available in a modernised trading environment can have increasing relevancy and appeal for advisers and their clients. And we expect to build further on these initiatives to make our SMF range a compelling part of an advisers’ repertoire and value add to clients
“We’re excited to partner with LV= to provide straight-forward access to their Smooth Managed Funds on our platform. It’s made possible through our capability to seamlessly integrate with LV=, enabling bespoke access to our market-leading technology. This is a resounding endorsement of our position as a trusted partner for major providers in the investment and retirement space where we have strong momentum and growth in the B2B market.”
LV=’s Smoothed Managed Funds are designed to deliver low-volatility returns for cautious investors. They incorporate a smoothing mechanism that works by simply averaging daily unit prices over the previous 26 weeks to reduce short-term market volatility.
LV=’s Smoothed Managed Funds are managed by the global asset manager Columbia Threadneedle Investments to a mandate set by LV=. The funds, available in pensions, bonds and ISAs, are most suitable for investors:
LV=’s Smoothed Managed Fund range is designed to provide steady long-term growth over a period of at least five years. LV=’s smoothing process doesn’t mean investments won’t drop in value. Smoothing will not prevent losses in longer term falling markets and investments may go down as well as up. The smoothing process has continued to perform as intended through the extreme volatility seen as a result of Covid-19. However, in exceptional market conditions (when the underlying price is 80% of the averaged or ‘smoothed’ price) the fund will be valued on the underlying price. We also reserve the right to do this at other times.
LV= is a leading financial mutual and serves over 1.3 million members with a range of financial products. 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.
LV= and Liverpool Victoria are registered trademarks of Liverpool Victoria Financial Services Limited and LV= and LV= Liverpool Victoria are trading styles of the Liverpool Victoria group of companies. Liverpool Victoria Financial Services Limited, registered in England with registration number 12383237 is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, register number 110035. Registered address: County Gates, Bournemouth, BH1 2NF.
Embark Group is a fast growing, diversified, financial services business and one of the leading retirement solutions providers in the UK. The Group trades under the brands Embark, Advance, Horizon, Stocktrade, Vested and The Adviser Centre and operates a wide portfolio of white label services to the Wealth Management, D2C, Robo-Advice, Retail Banking and Workplace markets.
Providing a combination of deep pension expertise and leading technology integration that cover the areas of Investment Platform, Brokerage, SIPP, Multi-Asset Funds, Fund Research and Employee Benefit Consulting, Embark works closely with financial advisers and its intermediary distribution partners to deliver their retail savings and investment propositions to consumers of all levels of affluence.
The Group has more than £37bn in assets under administration on behalf of c354,000 consumer clients, operating across seven UK locations (London, Bolton, Dundee, Edinburgh, Leeds, Leicester and Swindon). Embark has been recognised as one of the most innovative Wealth Tech companies for the past three years.
In January 2022 Embark became part of Lloyds Banking Group, a leading UK based financial services group providing a wide range of banking and financial services.