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Flexible Guarantee Funds Overview

The LV= Flexible Guarantee Funds (FGF) have structured and unique features to provide an important element of protection and investment security for client's retirement funds - both during the accumulation process before retirement and, more importantly, when clients start taking drawdown income.

These funds are managed by the global asset manager Columbia Threadneedle Investments to a mandate set by LV=. Columbia Threadneedle was selected following an extensive due diligence process.

LV='s Flexible Guarantee Pension (FGP) option offers a reduced wrapper charge of just 15bps when funds are solely placed in FGF

Client Suitability

The FGF are designed to suit a range of different client needs. With features to protect client investments against market volatility, FGF are a good option for:

  • Clients in retirement
  • Clients within 10 years of retirement
  • Clients looking to consolidate pensions
  • Clients seeking blended investment solutions

  • Smoothed returns

Smoothing to help reduce the impact of daily price volatility.

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  • It works by taking the simple average daily unit price over the last six months.
  • It still means that the value of your investment can go down as well as up - just less so each day.
  • Reducing your clients concerns over daily price volatility.
  • Guarantee option

An optional guarantee facility which can lock in investment gains to protect against downside risk.

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  • An invaluable option for retirement income planning and protection against the potentially huge impact of sequential risk.
  • Fund choice & risk rating
  • Three funds available with varying degrees of risk; Cautious, Balanced, and Managed Growth.

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  • The three funds have been risk rated by leading market and investment analysts Defaqto*, Distribution Technology and Synaptics.
  • Defaqto rated the funds Cautious – Risk Rating 3, Balanced – Risk Rating 4, Managed Growth – Risk Rating 5.
  • Distribution Technology rated the funds Cautious – Risk Rating 3, Balanced – Risk Rating 4, Managed Growth – Risk Rating 5. In their report on the funds, Distribution Technology stated that the unique smoothing mechanism had the effect of reducing the Risk Rating on all three funds to 2.
  • Synaptics rated the funds Cautious – Risk Rating 2.6, Balanced – Risk Rating 3.1, Managed Growth – Risk Rating 3.5.
  • Both Defaqto and Distribution Technology have produced independent reports about our Flexible Guarantee Funds (available on request).

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

Take a look at this short video for a high-level introduction to our Flexible Guarantee Funds.

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

Looking to de-risk client portfolios against market volatility without sacrificing growth potential? Take a closer look at our Flexible Guarantee Funds.

Clients getting close to retirement are often more risk-averse and need a secure and cost-effective investment solution like the Flexible Guarantee Funds.

Three funds are available with varying degrees of risk: Cautious, Balanced and Managed Growth.

They are managed to our mandate by Columbia Threadneedle Investments and risk-rated by leading fund analysts – Defaqto, Dynamic Planner, and Synaptics.

They’re suited for clients with lower risk profiles and designed for a longer-term horizon (5+ years).

They help smooth out market volatility with a transparent 26 week averaging process while an optional guarantee can lock in investment gains at any time.

The wrapper charge is 15bps when Flexible Guarantee Funds make up 100% of the pension investment, or 25bps when the funds are used alongside other investments.

To find out more visit LV.com/FGF or call us on 08000 850 250.

Latest Flexible Guarantee Fund Performance Information

Watch our last webinar Retirement Income in a Volatile Market in the Video Library

We’re hosting a webinar with Columbia Threadneedle Investments at 10am on 11 March 2019. Register here to join Deal or no deal: pension investments after Brexit.

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