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New ISA broadens investor access to the range of LV= Smoothed Managed Funds

17 June 2019 | Press Release


  • ISA investors can now benefit from the unique LV= smoothing mechanism
  • New ISA completes investor access to the LV= Smoothed Managed Funds alongside existing bond and pension products
  • ISA investors can choose from one of three global multi-asset risk-rated funds

Financial services mutual LV= has today launched a new stocks and shares ISA, adding to its existing range of Smoothed Managed Funds. The funds, which have previously only been available through bond and pension products, reduce the impact of short-term market fluctuations for investors through the unique and proven LV= smoothing mechanism.

Available only to advised clients, the new LV= ISA provides access for ISA investors to a choice of three global multi-asset funds – ISA Cautious, ISA Balanced and ISA Growth – which are risk-rated as 3, 4 and 5 respectively by leading market analysts Defaqto and Distribution Technology.

The new LV= ISA has no minimum fixed term although it is designed to provide steady growth for a period of at least five years. The minimum initial payment is £10,000, the maximum investment subscription is £1million, and ISA holders will have access to their investment at any time subject to a minimum balance of £500.

Clive Bolton, Managing Director, Life and Pensions at LV=, said: “Advisers and their clients have told us that they want to be able to access the range of LV= Smoothed Managed Funds through an ISA. We believe that the new LV= ISA not only meets that demand but, in conjunction with our bond and pension products, completes the ways investors can benefit from LV=’s unique smoothing mechanism.

“Our new ISA is likely to suit clients looking for low volatility investments, for example, someone looking to consolidate their existing ISA holdings into a lower risk environment as they near or enter retirement. Or more generally we would expect the LV= ISA to appeal to a cautious investor looking for potential returns in excess of cash deposit rates.

“We are really pleased to add the new LV= ISA to our range of products – it is another step on our journey to being a truly adviser-led business that helps people protect their income while they work, and maximise their income when they retire.”

The three global multi-asset funds – ISA Cautious, ISA Balanced and ISA Growth – are managed by Columbia Threadneedle Investments working in collaboration with the Investment Management Group at LV=.

For clients looking for capital preservation – perhaps looking to set aside part of their ISA investment to fund a particular life event – the ISA Cautious Fund also includes the option to purchase a 10-year capital guarantee.

LV= ISA holders will also be eligible for LV= member benefits such as the recently extended Doctor Services with remote GP, remote psychotherapy and physiotherapy services and discounted Health MOTs. In addition, there is free access to counselling, legal and tax advice through the LV= Members Helpline*.


Notes to editors

About the LV= smoothing mechanism:

The LV= smoothing mechanism is unique in the market, and is based on a 26-week rolling averaging of the underlying fund price. It is easy to understand and simple for advisers to explain to their clients.

Investors start on the underlying price and then move to the averaged price after 6 months.

Whilst the smoothing doesn’t completely remove the full impact of volatility, it removes the day to day volatility of investing – and helps create a low volatility/low anxiety investor experience.

*LV= Doctor Services and LV= Member Benefits

LV= Doctor Services and LV= Member Benefits are provided by third party companies.

These services are not regulated by the Financial Conduct Authority or the Prudential Regulation Authority. LV= Doctors Services is provided by Square Health Limited. This is a non-contractual benefit and can be removed or changed at any time.

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