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Flexible Guarantee Bond Series 3

Our Flexible Guarantee Bond (the Bond) is an onshore investment option with unique features to help protect clients’ funds.

Through the Bond, we offer three fund options that are managed to our mandate by Columbia Threadneedle Investments: Cautious Series 2, Balanced Series 2, and Managed Growth.

Main features

  • The Bond is a with-profits whole of life investment bond
  • Clients can buy a flexible capital guarantee to lock in fund value for a fixed 8 to 10-year term, helping reduce downside risk. (8 & 9-year guarantee periods only available with the Cautious Series 2 Fund)
  • Our funds are independently risk-rated by leading market analysts to help you assess client suitability.
  • The Bond comes with a built-in smoothing mechanism that uses fund price averaging to reduce the impact of market volatility on clients’ investments.
  • With the Bond, your client automatically becomes a member and is entitled to a range of benefits, at no added cost.
  • Our online valuation tool means you can find out how much your client's investment is currently worth in just a few clicks.

Potential investment boost with our mutual bonus after the first year

  • Being a mutual means we’re owned by our 1.3 million members. This means we put their interests first, rather than those of external shareholders.
  • When our trading businesses do well and our capital position remains strong, we can decide to award a mutual bonus*. Currently, we do this by increasing the asset share of certain LV= with-profits policies by a percentage, giving members a potential investment boost. In recent years, this has been between 0.2% and 1.0% (depending on their policy).
  • The mutual bonus isn’t guaranteed to be paid every year and the level can vary.
  • Since we introduced the mutual bonus in 2011 we’ve awarded a total of £210 million to eligible members’ policies.

*The mutual bonus is always at the sole discretion of our board of directors. And, in exceptional circumstances, the board reserve the right to take back previously awarded mutual bonuses, although this hasn’t happened to date. At the moment it’s only available to certain with-profits members, including our Flexible Guarantee Bond policyholders.

Take a look at this short video for an introduction to our Flexible Guarantee investments.

You'll find more videos and webinar recordings relevant to the Bond in our Video Library.


I’m Jon from LV=

Investing money can be stressful for your clients.

In 2014 the Chancellor introduced the revolutionary pension freedom and choice changes, which means your clients now have access to a range of options when thinking about how they can fund their retirement.

But of course it’s crucial that you can help your client make the right choices, especially when it comes to their investments.

Thankfully, LV=’s here to help.

We’ve created a set of funds called the LV= Flexible Guarantee Investments to help take some of these worries away.

We selected leading fund managers, Columbia Threadneedle to manage these funds for us so we can help provide the potential for your clients to grow their investment, whist also offering protection from market volatility.

Let’s take a closer look…


With our Flexible Guarantee Investments, you can choose one of three risk-rated, multi-asset funds that all offer a unique average price mechanism. This helps to smooth out the peaks and troughs of short-term market uncertainties.

The smoothing process is transparent and simple – Let me show you

Your client invests in the underlying price and this is used to value their investment for the first 26 weeks. After this the smoothing mechanism kicks in so it’s now valued at the averaged price from here on.

This has the benefit of absorbing and reducing the effects of short term market volatility.

The mechanism is tried and tested – it even operated normally throughout the credit crunch!


The funds have the added benefit of an optional capital guarantee which your clients can purchase at any time.

This makes it possible to guarantee a known value at a known point in the future regardless of what happens to the stock market in the meantime.

What’s more, the guarantee can be switched on or off at any time, which means your client can lock in any existing investment growth, whilst still benefitting from any potential future increases in value


These features may make the LV- funds the perfect choice for you and your client, especially if they’re looking for investment growth but are concerned about the impact of stock market volatility.

The three funds invest in a mixture of different assets to offer a choice of risk levels – to suit different attitudes towards investment risk.

Clients can invest in the funds through the LV= Flexible Guarantee Bond, or as part of a personal pension.

Both options feature competitive charges- including a loyalty discount which acts to reduce the annual management charge after a qualifying period.

And don’t forget, with LV= your clients also have access to our range of member benefits, including discounts on home, pet and travel insurance, and 24/7 access to our member care line.

To find out more about the LV= Flexible Guarantee Investments, please contact your usual retirement consultant, call our Retirement Desk on 08000 850250 or check out

Clients can use the Flexible Guarantee Bond in a variety of ways

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As a simple, low-cost investment

The Bond provides a straightforward investment option for your clients.

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To help with tax planning

There’s no Capital Gains Tax on withdrawals from the Bond, so higher rate taxpayers can withdraw 5% each year while just paying basic rate tax.


As a secure investment

Our optional guarantee locks in fund value throughout its term while the built-in smoothing mechanism helps protect against downside risk.

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For IHT Planning

Our Bond can be written on a joint or single life basis and by placing the bond in trust, clients can potentially help reduce their dependants’ IHT liability.

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As a tactical investment

Clients purchasing a guarantee can lock in investment growth after a market rally. Guarantees can be started, stopped and renewed at any time.

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For life stage planning

The Bond’s optional guarantee makes it an ideal choice for life stage planning as specific funds can be protected and earmarked for events.

Product profile

A summary of the relevant product information about Flexible Guarantee Bonds, in accordance with the Insurance Distribution Directive.

0800 085 0250

TextDirect: first dial 18001

8.30am – 5.30pm Monday to Friday

Calls will be recorded and may be monitored for training and audit purposes.

Full contact us information

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Flexible Guarantee Funds

Find out about our Flexible Guarantee Funds and how they suit risk-averse pension investors.

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Protected Retirement Plan

Read about our fixed term annuity and how it can work alongside our Flexible Guarantee investments.

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Find out how we can offer tax efficient savings with long term growth potential.

Contact us

Contact us

Read more about where we're based and all of our contact information.

Liverpool Victoria Financial Services Limited, registered in England with registration number 12383237. County Gates, Bournemouth, BH1 2NF, UK