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Flexible Guarantee Bond Series 3

Flexible Guarantee Bond Series 3

Through our Flexible Guarantee Bond (the Bond), we offer your clients three fund options that are managed to our mandate by Columbia Threadneedle Investments: Cautious Series 2, Balanced Series 2 and Managed Growth. The funds are invested in the LV= with-profits fund.

Each fund aims to achieve steady growth through a mix of equity, commercial property, fixed interest securities and cash. Plus, the funds have a built-in ‘smoothing’ mechanism that’s designed to avoid sharp rises and falls in investment value by averaging investment return over a rolling 26-week period.

We’ve had our funds independently risk-rated by leading market investment analysts Defaqto*, Distribution Technology (DT) and Synaptic to help you assess client suitability.

*Defaqto is a financial information business helping financial consumers and institutions make better-informed decisions

Benchmark Asset Allocation

Following a regular review of the investment strategy, changes are being made to the target mix of assets of the underlying funds. This began in August 2019 and is expected to be completed by the end of the year.

The charts represent the target benchmark asset allocations of the funds. Actual benchmark positions will differ throughout the year as some of the changes will take time to be fully implemented.

You can find more detail about the current asset mix of each fund in our quarterly fund factsheets.


Cautious Series 2

The Cautious Series 2 Fund is designed to provide long term steady growth together with a low level of investment risk.

Cautious Series 2 pie chart illustrating portfolio split.
UK Equity 7.0%
US Equity 7.0%
European Equity 3.3%
Asia Equity ex Japan 3.3%
Japan Equity 2.0%
Emerging Market Equity 3.3%
Property 3.0%
UK Gilts 14.0%
US Treasuries 7.3%
UK Corporate Bonds 19.0%
Overseas Corporate Bonds 19.0%
High Yield Corporate Bonds 7.0%
Cash 2.0%
Dynamic Real Return 3.0%

Total Equity Backing Ratio 30.4%


Balanced Series 2

The Balanced Series 2 Fund is designed to provide long term moderate growth together with a low to medium level of investment risk.

Balanced Series 2 pie chart illustrating portfolio split.
UK Equity 11.0%
US Equity 11.0%
European Equity 5.5%
Asia Equity ex Japan 5.5%
Japan Equity 3.5%
Emerging Market Equity 5.5%
Property 5.0%
UK Gilts 10.0%
US Treasuries 5.0%
UK Corporate Bonds 13.0%
Overseas Corporate Bonds 13.0%
High Yield Corporate Bonds 5.0%
Cash 2.0%
Dynamic Real Return 5.0%

Total Equity Backing Ratio 49.5%


Managed Growth

The Managed Growth Fund is designed to provide long term growth together with a medium level of investment risk.

Managed Growth pie chart illustrating portfolio split.
UK Equity 14.0%
US Equity 14.0%
European Equity 7.0%
Asia Equity ex Japan 7.0%
Japan Equity 4.0%
Emerging Market Equity 7.0%
Property 7.0%
UK Gilts 6.5%
US Treasuries 3.5%
UK Corporate Bonds 9.0%
Overseas Corporate Bonds 9.0%
High Yield Corporate Bonds 3.0%
Cash 2.0%
Dynamic Real Return 7.0%

Total Equity Backing Ratio 63.5%

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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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LV= ISA

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.

FOR UK FINANCIAL ADVISERS ONLY
LV=, County Gates, Bournemouth, BH1 2NF, UK