LV= boosts Flexible Transitions Account with new investment fund partner

Retirement specialist and mutual, LV=, has today announced an agreement with Vanguard, which sees the fund manager taking over the management of the ten LV= index funds.   These funds sit alongside a wider range of passive funds offered by leading asset managers.  

This move follows an extensive tender process and is part of LV=’s commitment to improve its products and services for the benefit of its customers and advisers. Vanguard has partnered with LV= since 2012 by providing access to the successful LifeStrategy funds.  This change to the LV= own label index funds reduces overall charges by an average discount of 44%, offering low Total Fund Charges (TFC), including a Balanced Index Fund with a TFC of just 0.09%. This, along with an adjustment on the underlying asset allocation from 80% Equities and 20% Bonds to 60% Equities and 40% Bonds makes the Balanced Index Fund even more attractive for clients looking to consolidate their pensions.

Eight of the ten funds will move into existing Vanguard funds while two - Balanced Index and Global Equity Tracker – have transitioned to bespoke funds created specifically by LV=. All ten funds now have a lower investment charge, with four now half the existing price.

Steve Lewis, Life Sales and Marketing Director at LV=, said: “We are delighted to announce that we are extending our relationship with Vanguard, one of the world’s leading fund managers, to offer a low-cost, high-value, passive pension investment for both our customers and advisers. 

“Vanguard has a clear ethos to be simple, low cost and transparent and, as a company created on mutual values, there are real synergies between the companies. We believe that, through this partnership, we can ensure both new and existing LV= customers get a high quality product and good value for money.

“This change to of Balanced Index fund in particular gives us a default fund in which I am genuinely proud to offer to our advisers and their clients.”

Robyn Laidlaw, Head of UK Distribution for Vanguard, commented: “Vanguard is delighted to have been selected as a key investment fund provider within the LV= Flexible Transitions Account. Index funds are increasingly popular in the UK as investors become more aware of the impact of costs and charges on their long-term savings.”

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Notes to editors

About LV=

LV= serves over 5.8 million customers with a range of financial products. We are the UK’s largest friendly society and a leading financial mutual. We are currently the UK’s joint number one brand for Insurance and Investments, according to the 2016 YouGov Brand Index Buzz Rankings. We offer our services direct to consumers, as well as through IFAs and brokers, and through strategic partnerships with organisations including ASDA and Nationwide Building Society

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