information

LV= uses cookies to give you the best experience online and to provide anonymised, aggregated site usage data. You can find out what cookies we use and how you can disable them in our Cookie Policy. By continuing to use our website, you agree to our use of cookies in accordance with our cookie policy unless you have disabled them.

skip to main content

Key benefits of the Flexible Guarantee Fund Series 2

Smoothed returns

We offer a smoothing feature that reduces the day to day volatility of investing money

  • It works by taking the simple average daily unit price over the last 26 weeks.
  • It still means that the value of your investment can go down as well as up - just less so each day
  • Helping your clients by reducing the impact of daily price volatility on their pension investment

Guarantee option

The FGF also has an optional guarantee facility which can lock in investment gains and protect against downside risk.

  • An invaluable option for retirement income planning and protection against the potentially huge impact of sequential risk.

Fund Choice and Risk rating

There are three funds with these features - Cautious, Balanced and Managed Growth. Each fund has a different Risk Rating.

  • 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.
  • These funds are managed by the global asset manager Columbia Threadneedle Investments to a mandate set by LV=.

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


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