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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 is designed to suit a range of different client needs. With features to protect client investments against market volatility, FGF is 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.

  • 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.

  • 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.

    • The three funds have been risk rated by leading market and investment analysts Defaqto* and Distribution Technology.
    • 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.
    • 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.

LV= Choice

Speak to your usual LV= sales contact for more investment options.

LV= Value

A range of low-cost/high-quality investment funds including market leading passive and risk-rated solutions

Investment value

LV= Wealth

Discretionary Fund Management and pure SIPP investment.


Investment wealth

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