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Introducing our new stocks and shares ISA, delivering a smoother investment journey and helping protect your clients' investments from shorter term market volatility. The LV= ISA provides access to a range of three global, risk-rated multi-asset funds, actively managed to our exacting mandate by Columbia Threadneedle Investments.

Five great reasons to invest

  • Choice of three global multi-asset funds - invest in a choice of one of three funds ISA Cautious, ISA Balanced or ISA Growth, managed by Columbia Threadneedle Investments within our governance framework and oversight.
  • Smoothed returns - our unique smoothing mechanism uses a transparent 26 week historic average of the daily fund price, to help reduce the day to day volatility of investments.
  • Risk-rated - all funds are risk-rated by leading market analysts, Defaqto, Distribution Technology and Synaptic. Individual ratings range from 'very low risk' to 'low medium risk'.
  • Capital preservation - our ISA Cautious Fund includes an optional 10-year capital guarantee available to buy on initial and subsequent investments, or on the expiry of a previous guarantee, where a guarantee option is available.
  • Simple on-boarding process - our online quote and apply application with no signature required makes it easy to apply.

Important Information

  • This is a stocks and shares ISA.
  • This is a non-profit plan which invests in our unit-linked ISA funds.
  • Clients will not be eligible to participate in any of our distributions to with-profits policyholders. For example, they will not be eligible to receive a mutual bonus.
  • Clients’ investments may go down as well as up, and they could get back less than invested.
  • Whilst there is no minimum or fixed term, our ISA is designed to provide steady growth for a period of at least five years.
  • Our smoothing mechanism doesn’t mean investments won’t drop in value. Smoothing will not prevent losses in longer term falling markets.
  • If clients select the ISA Cautious Fund and wish to take out a guarantee, they will need to be aware of our associated terms and charges.
  • By investing in the LV= ISA, your client’s investment is 100% protected under the Financial Services Compensation Scheme with no upper limit
  • In exceptional market conditions (when the underlying price is 80% of the averaged/'smoothed' price) the fund will be valued on the underlying price. We also reserve the right to do this at other times.

If you’d like to know more...

or have clients looking to transfer their ISA portfolio, get in touch with your usual Retirement Consultant. Alternatively you can call our Retirement Desk on 0800 085 0250 or email [email protected].

Ready to apply?

Take a look at our new webinar about the LV= ISA that was co-hosted with Columbia Threadneedle Investments.

Download the webinar slides

Chris Hood, LV= Regional Sales Manager

So, I'm going to cover off the challenge of volatility and I'm also going go over our Smoothed Managed Fund Range. I'm going to hand over to Alex Lyle as I mentioned before he's from Columbia Threadneedle. He's the fund manager for these particular funds. And then Warren Bright from LV= is going to go through our ISA offering and then we're going to go through and sum up some questions. Directly after Alex's section, we're going to go through the questions straight away because Alex is going to leave us after that juncture. So that will make sense.

The big news is, from our perspective is that the ISA has now launched a couple of weeks ago. So, we're really excited about that. We've had a lot of information, a lot of interest etcetera. So, we're going to cover that off. At the same time, we're also very excited, we've just had five years' worth of pension fund performance and I'm really pleased to say that our Cautious Fund annualised over the last five years has done 5 percent, the Balance Fund has done 5.8 percent and the Growth Fund's done 6.3 percent. So, I'm sure you agree, absolutely superb performance there. So, the objectives we've got today as you can see on the screen, we're going to consider our market volatility can impact a client's savings.

We going to explore the role and the value of the Smoothed Funds and just enhance your understanding of the Smoothed Funds, we're going to go through them and talk about the investment philosophy and the process underpinning the management of the funds we're going to introduce the LV= ISA and its key features and we're also going to identify the type of clients who should benefit from the Smoothed Funds. So, let me do a bit of positioning for the webinar.

So, investment volatility is creating market uncertainties is a key concern for clients and advisers and making clients anxious about their savings and or pension fund.

And as you can see on the screen there, the impact of volatility is clear. So, this screen here is showing you five years of the performance of the stock markets. And if you're within five years or even 10 years of your plan retirement, the sight of your pension fund or savings, going on a rollercoaster ride like this could potentially give you real cause for concern.

So, imagine you've seen a slide like this before and imagine you've seen the statistics before but it makes sense just to have a quick look here. So, we can if we consider the potential impact of a sort of market fall as you can see on the chart to the left there, the J.P. Morgan slide, this gives you various different drops in the market. So, for example a 20 percent drop in the market would mean you'd have to get 25 percent return in order to bring you back to par.

So, there's various different examples as you can see a 60 percent drop in the market would mean you have to get one hundred and fifty percent back.

As an example, then if you did have a pension value of a 100,000 at the start of the year and it fell by 15 percent, you would need 18 percent to make that 15,000 differential backups if you only got 15 percent which you've just lost you'd only bring yourself back up to 97,750. Obviously from that point of view that's volatility drag. So, it's really important for clients to understand that when they're in these pension funds and at the end of the day this is a big issue for clients. And this assumes of course that no income's being taken.

So, there are obviously various solutions that we can we can bring to clients to mitigate these issues and concerns. And obviously there's several that we can take into account. So, diversification is a common one. Spreading the investments around makes a lot of sense across many different sectors to try ensure that the downtime in one particular area doesn't have too much of a detrimental impact on the overall performance. Another is to invest in funds that mean elements of investment guarantee. This can be costly perhaps but at least it'll make the clients a little bit more happy in the situation.

But there are other solutions. And here's one and this is Smoothed Funds range. And this is how it works. So, we got a multi-asset risk rated funds and they're designed to help deliver a reliably lower volatility investor experience hopefully alleviating all the discomforts we've just been talking about. And how do we do that. Well, there's three different areas that we do. So, we've got a unique smoothing process. So, what happens is we have got a 26-week average of the daily fund prices which we take into account and we just take into an average.

So what's actually happened over the last six months, we just put the smoothing process over and above that. So, Columbia Threadneedle handover the funds to us whatever they've done as soon as you hit six months, in that particular fund, we will then average those prices over the last six months. So, your client gets that smooth price. Those three funds are actually in the three four and five sectors out of ten, from Defaqto and Distribution Technology and we're going to try and stay within those lanes, so it delivers consistency and it delivers a level of volatility and risk that your clients are willing to accept.

And you as IFAs are offering us a solution to them, so they’re going be consistently risk managed. And of course, we've got the expert fund management and governance of Columbia Threadneedle, obviously a leading global asset manager within our governance framework and oversight, so you can see to the right-hand side there's a chart there the underlying chart or underlying line I should say, is the lines very similar to what we were just looking at before with the market volatility. This is over the last two and a half years and the line above it is our Balanced Fund where we've been able to smooth out that volatility and give the clients a little bit more reassurance and a bit more of a smoother ride in these markets.

So just to illustrate that a little bit further we've got a scatter chart here. And ordinarily if you've got a risk two profile fund, you'd expect a volatility of 3.19. If you've got a risk profile three fund, you’d expect the volatility of 5.3. So, our risk profile three fund is our Cautious Fund. As you can see we've I put an arrow on there for the A. So, as you can see the volatility of that fund there's only been 1.35 so you can see that the clients are getting a decent return, as we mentioned before 5 percent over the over the five-year period and the volatility is only 1.35. So, they're getting the return but getting a really low volatility at the same time. So, hopefully alleviating all the issues we've just been talking about with regard to volatility. Also, plotted on there B, which is our balance fund and C which is the growth fund. And as you can see there, you get a little bit extra growth for a little bit more volatility. But all in all, the volatility is actually two or less.

So, we're able to deliver that with a combination of the three areas that we're working upon. And we've also put that the sector averages in there so you can see the difference. You got the D E and F, the nought to 35, 20 to 60 and 40 to 85 sectors so you can see that clients are getting really good returns with really low volatility.

We're now launching the ISA as part of this Smoothed Fund range. You're probably aware that we were we've had a pension fund for the last five years and a bond fund that for just nearly 10. So, we're really happy about that. And Warren a little bit later on he's going to cover off the new ISA range for us but of course the main part of our particular fund, the most important part is the fund management side of it and we're really happy and we're really pleased to be partnering with Columbia Threadneedle. Columbia Threadneedle are a major asset manager in the world.

They've got 353 billion pounds worth of assets under management in 18 countries over four continents. So, in terms of partnering up with the right investment management group we've obviously picked the pick one of the best there.

They're award winning particularly in multi asset management funds, they're five star rated.

So, this is the company that we were really pleased to be partnering with. Alex Lyle is the fund manager for our funds, he's been with them for 20 years and we're really pleased that Alex is with us this morning.

I'm going to hand over to Alex now who's going to cover off the area with regards to Columbia Threadneedle.

Thank you, Alex,

Many thanks Chris, I'm delighted to have a chance to talk to you all about the Smoothed Funds.

What I'm going to talk about is how we run the funds our philosophy and our investment process, how we put these funds together. So, first of all on our investment philosophy, what makes us different from other fund managers and why do we think we've performed well historically and why do we think we continue to do so and at the heart of that is this Venn diagram of global perspective advantage. We think that is key to what we do and does differentiate us from many of our competitors.

What we mean by that, is establishing the economic and market environment that we're operating in and that is such a crucial starting point for making investment decisions.

And the key here is how we get to that position how we establish that view and it is by combining what we call the macro and micro. By the macro we mean top down factors such as looking at economic numbers, political events what bond markets are saying about the world etcetera. And very importantly combining that with the micro. And that is what our analysts are seeing and hearing when they go round and see their companies, what are they saying? Are they investing in new capital?

Are they taking on new staff or are they cutting back and then back at the office comparing the views that we're getting from these two different perspectives? And a lot of debate takes place and that's a crucial part of it having the right environment and the right sort of people that like discussing things, like challenging each other, like being challenged like debating and coming to a team view about the world we're investing in and that ensures that we're in the right sort of companies e.g.

Are we in safe solid defensive strong balance sheet companies in tough times such as food companies or utilities? And then we want to move that to more cyclical economically sensitive types of companies etcetera. When we think the world looks more benign and is expanding. I mean we still definitely want to pick the best companies out there. But being in the right type of company at the right time is an absolutely crucial start and we think that has been a major factor in our performance over a long period of time.

Moving on to process how we put the funds together on the next slide.

It's very much a collaborative team work approach. The process starts on the left-hand side with those three boxes and those are three crucial meetings that take place on a monthly basis, looking at what's going on. The first the economic research group speaks for itself, what sort of an economy are we in globally.

Secondly, looking at valuations, what sort of valuations do we see out there for all the different asset classes. And it may be that we feel we're in a great world for equities but they may already be discounting all that good news and be too expensive. So, what are valuations looking out for the different asset classes. And the third meeting is looking at sectors and themes that might be very important globally for our investment decisions. I mean, for example, very recently we had a meeting on the food industry, the changes taking place there.

So, for food retailers, millennials are looking for local fresh, type of food. They don't want that big out of town supermarkets anymore or they want their food delivered to them. That has massive implications for the food retailers, for the food manufacturers. People don't want the big brands these days. They want small craft names, different names and for eating out, you know, what Deliveroo and UberEATS are doing it has huge implications for restaurants. So, things like that we spend a lot of time as a team looking at what that might mean for the industries we invest in and the assets we invested and all of these meetings were attended by representatives from all areas of the investment world.

Big team meetings. And the output from those meetings are a crucial input to the second phase of the process and that's that middle section of the slide. The asset allocation strategy group and that is a group of eight of us, eight senior investors and we meet at least weekly maybe more often to establish what we call our asset allocation matrix which is our preferences for the different asset classes.

Whether it's bonds, equities etcetera, property and within that which equity regions do we like within bonds which type of bonds do we like. And that drives the asset allocation for all our multi-asset funds. The final section over there on the right-hand side is the portfolio manager. I then implement that asset allocation strategy by investing in our internal in-house funds and at the same time we constantly do a full risk analysis.

On to the next slide.

Just to emphasise the point about teamwork, although I'm the Fund Manager there's a huge amount of input from many other investment professionals within our company. And if you look at that chart at the bottom, you've got myself the fund manager there, Matt Reese, Deputy, we run the fund on a day to day basis. But if you look at the boxes down at sort of five six seven o’clock, if it was a clock face. Those are big meetings with input from across the whole investment floor, very important input multi asset funds. On the left-hand side, you've got all the names the people in the multi asset team and it's nearly 30 people.

Their input is all useful stuff. And crucially on the right-hand side, you've got the eight photographs of the asset allocation strategy group and that is that middle section of the slide I showed you before the Group of eight of us that meet weekly to set our asset allocation strategy i.e. are we overweight equities, underweight bonds, do we like Japan more than Europe etcetera. And you can see that those are senior people, people like Mark Burgess our Chief Investment Officer William Davis top right, Head of Equities globally.

Multi asset funds are very important to us and we invest a lot of time in the management of those funds. It's a core part of our business. We've got excellent track record at it and as a result we have recently won some important awards which are shown in that third bullet point above. Most recently, the insurance asset awards, we are the Multi Asset Manager of 2019.

So finally just to sum up, we've got a strong asset allocation process that we've had for a long time and it's produced good results. We have a full range of in-house good performing funds to invest in and we see it as a great benefit investing in proprietary in-house funds. It gives me as the Fund Manager much better insight as to what those funds are up to what strategies they've got. It's much better for deep down risk management.

We know exactly what all the portfolios are holding. It ensures a consistent strategy. For example, all the fund managers are working to the same view of the world environment. And it also helps to control costs and that approach has given us a good strong consistent track record in managed funds. I'll leave it there and hand back to Chris

Thank you very much Alex.

That's really really informative, really helpful. And I myself made quite a few notes there for everybody and it's really reassuring to hear that your active management style at Columbia Threadneedle is working so well and obviously you've got a consistent rigorous process that is working too, it’s worked really well over the years. And it's good to hear that you know your core markets are these multi-asset style funds which you do and deliver really well for us over the period.

We've got a couple of questions in Alex, before you go if that's alright. If I just ask you a couple of questions from our webinar attendees this morning. So, Q4 was a challenging quarter across the markets last year and obviously goes without saying but how was the first six months of this year been for the underlying funds from our funds. A lot better without doubt.

Q4 was a very painful correction in markets and corrections do come along historically and they will in the future. And we have to weather those storms. And so, it was just a difficult time for the funds. But 2019 has been a lot better. During that correction we kept kicking the tires and seeing whether we believed that our view of the world was still correct that there was reasonable growth around that equities were reasonably valued et cetera. And we decided that things hadn't materially changed. We stuck to our guns and that has borne fruit and the first half of 2019 has been much better.

Over the six months, equities are up roughly mid-teens in sterling terms. Bonds up less but I bet they're up about 5 percent. One of our favourite markets at the start of the year was Europe. And that's one of the best performing markets. And very importantly, the sorts of companies that are doing well this year are the sorts of companies that we favour, which is what we tend to call growth companies good solid companies that we think have got good management good products and can grow over the medium term whereas during Q4 it was actually the less good companies the more challenged companies, that held up much better in the correction.

And that was painful for us.

OK. Thanks Alex. That's really good news and it's something that our IFAs on the webinar will be really pleased to hear. So, thank you very much for that. And we've just got time for one more question if that's if that's okay

And this is a question that's come through here and it's a question saying, 'how would Columbia Threadneedle respond, if for example it was a market crash in the US?' So, if there was a market crash in the U.S. overnight when you guys meet up in the morning, what would happen?

Well, first thing say is, we hope we would be ahead of the event and wouldn't come in and be shocked by a crash. We hope that, our process is aimed at detecting the signals that might lead to difficulties in markets, might lead to a change in markets. So, we're constantly monitoring economic events, monetary events, political events, corporate events, hoping we pick up vibes of things that might be changing, and therefore, I hope we might have lightened our positions in equities, ahead of a crash if there was one. But clearly, we don't always get that sort of foresight right, nobody does.

So, if we did come in and find there had been a crash, which we weren't positioned for, the first thing we do, would be to start kicking the tires very hard. We wouldn't panic to react. So, you know I mentioned that economic research group we'd get them going to see whether their view of the world, economy had genuinely changed overnight whether something had happened, there was an event, that had caused them to change their views on economies or not. We'd get the valuation research group into action, had the correction, the crash brought prices down to such low levels that they were already discounting a worse environment we could possibly envisage, we would get all the analysts to work to see whether their expectations for corporate earnings, might have changed due to new circumstances or not.

And then the asset allocation strategy group that group of eight of us, would sit down and evaluate what we've heard from all our analysts and decide whether we should change our position or whether actually, this crash wasn't founded on a fundamental change of circumstances. And it had in fact thrown up an opportunity to add holdings, a lot of work will have to be done now.

Thank you, Alex. That’s really reassuring and now we'll see the benefits of active management there. So, thank you very much. And I know you've got to leave us now. So, thank you very much for joining us this morning. It's always great to hear from the manager of our funds.

So, thanks for making yourself available as ever.

I'm delighted to come on and have a chance to talk and support these funds.

Thank you. We look forward to seeing you soon. Thank you. Thanks. Thank you very much. Okay then. So, from our perspective, the big news this morning for us to chat about over the webinar is obviously we've had our updates here from Alex, is the new ISA. And the new ISA that we launched a couple weeks ago is a really really step forward for us. So, as you know we've got the bond and we've also got the pension funds and this brings it full circle so we're able to offer a solution with these funds to these three particular markets.

So, what I'm going to do. I'm going to hand over to Warren and he's going to go through this for us and explain further. So, thank you Warren, I'll hand the slides over to you.

Thank you, Chris. Good morning everybody and thank you again for those who have dialled in today and taking the time to hear our webinar this morning.

I'm Warren Bright one of the regional sales managers within the LV='s retirement and investment division and today I have particular pleasure to talk about the launch of our LV= ISA which went live from the 17th of June this year. Today, I'm going to cover off the high-level market figures for the ISA product then taking some time to cover the key elements of the LV= ISA specifically. Also, I will cover the types of client we believe this product is most suited for. And then finally look at the key opportunities for financial advisers within the market.

So, if you take a look at this slide, the size of the prize, the numbers we have used within this are from the HMRC statistics released in April 2019 and I'll leave you to read those. However, a couple of key areas I really want to bring out firstly is the size of the ISA market. It's huge, 608 billion has been invested in ISA since they have gone live, 69 billion invested in ISA in 2017 - 2018 through a combination of subscriptions and importantly ISA transfers.

For me, surprisingly 44 percent of the investment into ISA was into cash. Therefore, there is likely to be clients that cash ISAs could be looking for the potential of more growth than they are currently receiving. And we believe genuinely believe the LV= ISA could be a good alternative for them. And at this point this is really enforced by the following slide which will cover off the key areas of LV='s ISA

So, the LV= ISA as Chris mentioned, uses the Smoothed Funds for its investments. For those of you familiar with these funds they were and still are available within our bond and our pension wrapper and we now will for this available through our ISA. We offer three active funds managed by Columbia Threadneedle with Alex and his team. They are Cautious which is 20 percent in equities, Balanced 35 percent in equities and Growth with 50 percent in equities. And importantly you can see they have all been independently risk rated by the leading rating agencies.

Therefore, especially for our Cautious Bond, we believe this is a perfect option for those who are in cash but are seeking the potential for greater returns. Finally, I would point out that the LV ISA will provide one hundred point one per cent return of the fund in the event of death and it is fully protected by the Financial Services Compensation Scheme with no upper limits. Okay, let's talk about the investment protection that the LV ISA offers.

Clients have got the option of buying a guarantee at outset. This is a 10-year guarantee on the cautious fund. So, in effect a client can transfer their ISA, for example, of two hundred thousand pounds for LV and we could guarantee that amount on the 10-year anniversary less withdrawals and less adviser fees at the end of the 10-year term. And importantly across all of our Smoothed Range Funds we provide the smoothing mechanism the simple transparent easy to understand mechanism for clients and advisors.

Average is daily unit prices over a twenty-six-week period

Okay. Additional permitted subscriptions are a small but very valid point is the opportunity within the LV= ISA, it enables clients to accept and invest additional permitted subscriptions. So, from the 6th of April 2015 I'm sure you know that if you're dialling in the additional permitted subscriptions and enabled a surviving spouse or civil partner to inherit the tax benefits of their deceased partner's ISA allowance. They are a one off, ISA allowance available that can be a made in addition to that annual ISA allowance.

We think this is a really valuable feature giving the ability to maximize tax free savings but also providing an important inheritance tax planning tool so I'd like just to cover off where we see the advice opportunities and where some of the benefits will be for clients using the LV= ISA, specifically and the first one I'm going to focus on is up risking currently instant access best rates for around one and a half percent and with inflation running at approximately 2 percent we are genuinely in a real position where cash ISAs are losing clients’ money and if we take a step back to the previous slide that I presented about 44 percent of the ISAs that are in force at the moment are in cash.

Absolutely it's possible to get better returns out in the market but no doubt a client would have to lock in their money over a longer period of time in order to achieve this and undoubtedly, they would likely be penalties if the client look to take their money early.

So, what we think is a really good option is a low risk Cautious Funds for example with a built-in level of protection plus an optional guarantee still providing access to potential equity growth but we believe this is genuinely a strong option worth considering

So, to touch on down risking say potentially older clients looking to consolidate a range of stocks and shares ISAs can look to the risk of portfolio.

Again, they still have the ability to achieve long term growth alongside levels of protection that their accrued asset and seek helps them against market volatility.

FSCS protection. We believe that our unlimited FSCS protection is an important point for cautious clients to consider. LV offers again unlimited protection as opposed to other non-life insurance plans that offer only 85000 pounds or less depending on the type of investment into their ISA and then finally additional permitted subscriptions.

We think this is a really good opportunity as highlighted before many clients will be older looking for a secure home and it might be worth thinking about possible solicitor contact you potentially have as they tend to deal with the sorts of scenarios that makes APS appropriate

Okay to bring these client opportunities to life in a bit more detail.

We have a couple of examples just to cover off now and the first one is Colin. Colin has been investing in ISA since 99. He has a portfolio of roughly 150000 pounds. He has a low attitude to risk and he's looking to pay off what's left of his mortgage in 10 years' time which will be 95000 with a further some to support some of his retirement costs. Colin doesn't want to make any a subscription to his ISA and is looking for potential returns in excess of cash deposit rates. What we believe as a potential solution that an adviser would be looking to recommend.

If the LV ISA= Cautious Fund, a multi asset fund powered by Columbia Threadneedle with risk rating of three from Distribution technology and Defaqto, low equity content as discussed before its 20 percent but with the opportunity to gain investment growth, an optional 10-year guarantee. If Colin did require this which can be stopped at any time but also at the end of that 10 years, if Colin wants to renew that guarantee he has the option of doing that as well.

One-hundred-point one percent death benefits to the fund in the event of death. An extra reassurance I've discussed before of full FSCS protection.

Onto the next example, clients Winifred Jones lost her husband Arthur in September 2018. Arthur was a relatively adventurous investor who played the markets and investments in stocks and shares with a value of around 200 thousand pounds. Winifred is a low to medium investor with a risk profile. She's comfortable with the possibility of losing money but she wants to make sure there is some built in level of security so we feel that the LV= ISA the growth fund risk rated 5 by Defaqto and Distribution Technology is a great potential solution that a potentially adviser would be looking to recommend.

With Arthur passing away it gives Winifred the example the opportunity to use Arthur's ISA allowance alongside her own additional ISA allowance, as well making her able to maximise that opportunity. Investing in that tax-free environment

Okay so we're nearly finished going through the LV= ISA but to summarise some of the types of clients the FBI says is well suited to just a quick summary so we'll think that this product is perfectly positioned for those clients that have a substantial ISA holding looking to consolidate into a single arrangement. Looking at those clients are looking for capital growth investing over the medium to long term. We do not see this as a one-year product. Ideally 10 years or more happy with the concept of stock market investment where values can fall as well as rise and approaching or in retirement looking to use ISA as part of their income planning process cautious investment outlook between 3 to 5 and seeking growth potential alongside reduced investment risk.

And I would urge you that if you want greater details about the types of client ISA that we believe this product is suitable for then please get in contact with your retirement consultant or make a comment at the end of this webinar and we'll be more than happy to send you through the helping you to identify client types of LV=’s ISA to you in the post or electronically so, in addition to the points we have made related to the strength of the LV= ISA, I want to point out that importantly it could not be easier to submit business to LV=.

We provide an online quote and apply journey where the end to end journey is within minutes. It's a signatureless application process making your life easy. Also, in addition to the LV= ISA, your client would be entitled to the range of LV member benefits including discounts on the full range of our LV general insurance products but also access to an online Doctor Service where your clients can book GP appointments and have a face to face appointment through Skype typically booked within 2 to 4 hours.

We genuinely believe that these added benefits are really provide additional value to your clients along with the attractiveness of the LV= ISA products.

So, to summarise, we believe that the ISA market is a great market opportunity especially in the elements of such a high proportion being into cash. The LV= stocks and shares ISA offers the choice of three risk rated multi asset funds powered by Columbia Threadneedle are designed to provide steady growth over the long term with a level of investment risk but importantly you have that built in smoothing mechanism that really protect you against sudden market turbulence plus an optional 10-year guarantee.

We believe that you're getting best of both worlds ideal to use part of a flexible retirement income planning strategy and an ISA designed for more cautious clients in uncertain investment times thank you for listening to LV= ISA.

But before handing back to Chris this is your opportunity to ask any questions so please feel free to do so through the webinar. But in meantime there should be a poll available regarding whether you have heard of our Smoothed Managed funds which are now being made available through our ISA.

Thank you very much and Chris I'll post back to your good self. Thank you, Warren. Thank you very much.

As I say at LV=, we’re really really excited by the launch of the ISA.

And we can now offer the ISA in conjunction with the bond and the pension. These three Smooth Funds are really popular at the moment. We've been chatting earlier why the Smoothed Funds are so important as a solution for a face to offer to clients. Volatility reasons. So, it only makes sense to bring it open to the ISA as I know a lot of you out there have been asking when we're going to launch one. So, the good news is, it's up and running. And I'm sure you've probably seen some information we sent through already to you.

And also, we can offer it in conjunction with pension income.

So, another offering for us is we know a lot of people want to use in an ISA in retirement as an income option.

And now we can combine the two here having their pension income through the Smoothed Funds but also through the ISA as well. So, thanks for that, to Warren and the Smoothed funds available as you mentioned before and three four and five out of 10 risk ratings as Warren's been saying with low volatility decent returns. The FSCS protection appears to be something that's really popular with IFAs. We've had this feedback and you know we work with I think not to worry about them to stick to 85000 in cash ISAs for example which has worked really well.

And the sign-up process for clients as well, so the electronic signatures if people are familiar with our quoting and apply on the bond it's very similar to that. And our initial feedback we've been getting from IFAs is they're really pleased how quick the process is and how easy it is to be able to do that with. So, and so it's all good from our perspective. And we've had quite a few questions in for you Warren. Excellent.

And what would we say if we can't answer all of them of course but what we'll do through your normal channels we will get the information back to you. We've also had some questions from Alex as well which we will get back to you on.

And the first one to ask is how well-established are the funds, these Smoothed Funds that LV= offer.

Okay. So, the funds have been in existence in different wrappers. So, we started off within our bonds which is coming up to its 10th year anniversary in August and we have now achieved our five-year track record within pensions. And importantly our relationship with Colombia Threadneedle goes back to when the launch of these the funds were from the very beginning and we have a great relationship with Colombia Threadneedle and we believe they're providing excellent returns. So, to bring that to life a little bit more.

If you look at the five-year performance within our Cautious on an annualized basis, that's delivering 5 percent balance five-point eight percent and growth six-point three percent. So, we think they're really delivering the job that they're intended to, providing the opportunity for investment growth but reducing that volatility as part of the smoothing mechanism that we offer.

Okay. That makes sense Warren and I believe that the bond anniversary, it’s the ten-year one next month isn't it.

That's right in August. So, these funds have been running g a long time and they've been through different market scenarios and stood the test of time and the smoothing mechanism itself has been running since 2005. So, albeit, not in these particular funds but I would say that this meeting mechanism that we've been running so. So, thanks for that one and we got a question here about who administers the ISA.

Very straightforward question that's administered within our head office in Bournemouth. So, one of the key aspects for when we launched the product was we wanted to make sure that the administration was first class, really complementing the Mutual values and behaviours. So, we're really proud of the service that we offer the team within Bournemouth that are responsible for administering the ISA are the team that are responsible for our guaranteed bonds. So therefore, it was a natural progression as part of that development is to move across to ISA we are trying as much as possible to make it automated for advisers through the online quotes and apply journey but there is a very experienced team in Bournemouth that would be able to help and answer any adviser queries.

And we think that our service really stands out within the market in that respect.

Thanks Warren Yes. We are five stars rated and administered from that perspective. And I think the initial conversations that we've been having with our IFAs are pleased it's our bond team that's actually administering them so they do very well don’t they. So thanks for that.

And got a question here, will slides be available post webinar. So, from that perspective the answer is yes. Simple one we'll make sure everybody gets a copy of the slides who wants them. And so, you can look at the notes and the presentations that have been had this morning will make sure you get those and we've been asked if there's a junior ISA available at the moment and as it stands the answer is no. But we're obviously looking to develop these Smoothed fund systems with many scenarios, as we possibly can do knowing that it's a great solution for clients.

So, whilst we haven't at the moment we'll look into that and we'll come back to you. Thank you for your question. And sort of the last question which we can cover off this morning is do we provide anticipated annual returns for these particular funds. And the answer to that is currently no, not at the moment the way the funds work, as I said before our active managers Columbia Threadneedle, they put the funds together and obviously that they're the multi asset award winning fund house.

They then hand the performance of the funds over to us and then we just look backwards and we smooth that over the six-month period so over the 26 weeks. So, as the style of the fund there's something that that we don't give anticipated rate of return going forward. We don't get involved with any actuarial adjustments or anything. We just smooth it, smooth those particular funds. So, we feel it's best of both worlds. And so, it's not in the style of the fund to be able to provide that, saying that in the future we may decide to give an indication based on this on strategic asset allocation of what these funds may deliver.

But obviously again that starts on a projection isn't it. So, the answer to your question is they're not at the moment but we may decide to offer that facility in the future. Okay. Thanks very much Warren. That was really good thank you.

And we're just going to move over. We've got a poll for you which you'll perhaps see on your screen and you can cover that off and move it on just summing up from the morning.

Thank you again for listening in and joining us this morning. The CPD will be will be coming over to you shortly and just as a quick reminder what we've done this morning, we've talked about the market volatility and the impact on client savings. We've looked at various solutions for that to explore and we've explored the role of the Smoothed funds that can mitigate those particular issues and deliver a solution for your clients.

And we've hopefully given you an enhanced understanding of how our Smoothed Fund works and the investment philosophy that Columbia Threadneedle and their active management put together for us on the underlying funds and hopefully the due diligence that they put together and the explanation that Alex has made will make all our IFAs out there feel very comfortable and very confident in the proposition and that process appears to be very robust and very good. And as we can see from the results that Warren was talking about over the last five years on the pension they're very very good results.

At the same time delivering low volatility. We've obviously introduced the LV= ISA officially over the webinar and Warren has been very careful to explain all different sides of it, where we think it's important. And also, the type of clients that you may wish to talk to about this as a potential solution and also the advantages things like the FSCS protection etcetera. So, all that remains for me to say this is thank you very much again for tuning in this morning and we hope to speak to you soon.

In terms of next steps, with regard to the ISA, there’s lots of literature available for you to have a look at. Please have a look on our website and adviser/ISA. Obviously, it'll give you more information on there if you want to on the pensions and the bonds as well. So please speak to your retirement consultant and I'm sure they'll be in contact with you just to make sure you're okay with everything and give you any supplementary information on any questions. And of course, we can deliver any answers to the questions that you've raised this morning through that channel as well.

We've also got the dedicated phone number and if you're not familiar with who your consultants are at LV=. But obviously we're here to help and we'd love to for you to get in touch with us.

So again, thank you very much. And I will say good morning and let you get on with the day. Thank you very much.


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LV=, County Gates, Bournemouth, BH1 2NF, UK