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.”

For more information, visit lv.com/adviser