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Fund Management

Our Smoothed Managed Funds are managed by Columbia Threadneedle Investments, to a mandate set and governed by a specialist investment team within LV=.


Who are Columbia Threadneedle Investments?

Columbia Threadneedle Investments is a global asset manager with a strong reputation in developed and emerging market equities, fixed income, commodities, UK property and multi-asset solutions. They focus on what they do best – active asset management is their only business.

They have worldwide assets under management of £368bn (as at 30 June 2019) and are fully owned by Ameriprise Financial, a leading US-based and well capitalised financial services firm. Learn more about Columbia Threadneedle Investments.


How we work together

Although Columbia Threadneedle Investments has been selected to manage the Smoothed Managed Funds, the responsibility for producing strong risk-adjusted investment returns for policyholders rests with LV=.

We've developed a robust monitoring framework to provide support for and oversight of the operation and investment performance. This is followed on an on-going basis to help ensure the delivery of performance reasonably expected by customers from their investments in the Smoothed Managed Funds.

Watch Alex Lyle of Columbia Threadneedle Investments talk about the management of the Smoothed Managed Funds in this short video:

Hello, I’m Alex Lyle, Investment Manager & Head of Managed Funds at Columbia Threadneedle Investments.

We are a leading global asset management company, part of financial services group Ameriprise Financial, with more than 2000 employees located across 17 countries around the world, including 450 investment professionals .

We have a very long and deep relationship with LV=, one of our largest strategic clients, and over many years have collaborated closely to ensure that the funds within the LV= Smoothed Managed Fund range deliver the outcomes required to help achieve the expectations of LV= policy holders. The funds are split into three risk categories: Growth, Balanced and Cautious. These categories are determined by the extent of investment in equities, which carry a higher level of risk, compared to bonds, which are lower risk.

The asset allocation for each of these risk categories is modelled using views of expected returns and volatilities. The modelling involves thousands of asset allocation scenarios and the results are subjected to analysis and due diligence to reach the optimal allocation.

The underlying investments in each fund come from our extensive range of pooled funds, each with its own specialist, dedicated management.

We strongly believe in the merits of selecting in-house funds as it allows deeper risk analysis, keeps costs down and ensures greater consistency of strategy. Our investment philosophy and process are built around collaboration: we emphasise teamwork and integrated research. We aim to deliver superior returns for our clients through:

An active approach that takes advantage of market inefficiencies

Our perspective advantage – the combination of macro and micro analysis to establish our view of the global economic environment.

The appropriate allocation of risk

Our aim is to deliver consistently strong real returns over the long term, whilst carefully managing risk within each fund. We believe our long-term track record demonstrates our ability to add value through both stock selection and asset allocation, backed by the unique investment philosophy which underpins our business.

This involves a strong process, based on extensive teamwork from a wide group of experienced professionals.

If you’d like more information about LV=’s range of Smoothed Managed Funds, please speak to your LV= Retirement Consultant.


Risk ratings

All three funds have been risk-rated by market leading analysts, Defaqto and Distribution Technology, helping you to match the fund choice to your clients’ risk profile and ensure investment suitability.

Ratings agency

Cautious

Balanced

Growth

Defaqto

3

Cautious

4

Cautious balanced

5

Balanced

Distribution Technology

3

Lowest medium risk

4

Lowest medium risk

5

Low medium risk


Useful documents

SMF Monthly Investment Summary Thumbnail

Smoothed Managed Fund Range - Monthly Investment Summary

A monthly investment summary of our Smoothed Funds performance

You can also view Quarterly Factsheets for each Fund on the Flexible Guarantee Funds and Flexible Guarantee Bond pages.


Responsible investing

Responsible investing is becoming increasingly important to many clients. LV= is an active advocate of responsible investing and it is our belief that well-governed companies are more likely to outperform in the long run. Understanding and being mindful of the environmental, social and governance risks and opportunities is key to generating sustainable returns.

How do we invest responsibly?

Responsible investing is integrated into the investment process. In partnership with our fund manager, Columbia Threadneedle Investments, we’ve been doing this for a long time. Responsible investing requires effective analytics, providing insights into key risks and looking at the range of factors that drive opportunity.

We look to drive stronger performance by:

  1. combining enhanced insights from financial and non-financial research
  2. focusing on undervalued companies with sustainable business models and good standards of operating practice that support their role in the economy and society as well as their impact on the environment
  3. having the talent, tools and techniques for this, as good stewards of our client’s capital.

Our environmental, social and governance (ESG) positions are regularly monitored by our Investment Committee. In 2019 only 0.05% of equity assets in our main with-profits fund and our three Smoothed Managed Funds were invested in companies with at least 25% revenue generated from coal use, production or extraction.

We do use exclusion rules, such as a full ban on investing in companies that profit from controversial weapons, but where possible, we believe in engagement over exclusion. This means we can use our influence and voting rights to drive positive change and generate returns in the long-term.

Our approach to investing is also industry recognised

We were awarded ‘Investment Strategy of the Year’ at the 2019 Insurance Asset Management Awards.

Insurance Asset Management Awards 2019

Working in partnership with our fund manager

We leverage Columbia Threadneedle Investments' considerable strength in this area to ensure the best possible outcomes for your clients.

How Columbia Threadneedle Investments demonstrate their commitment to responsible investing
Early innovation
Their Responsible Investment team was built in 1998, and they were a founding signatory to the United Nations Principles for Responsible Investing (UNPRI) in 2006.
Industry recognition
They were awarded the top rating by the UNPRI in 2018, and have continued to win numerous industry awards relating to their consideration and integration of responsible investing.
Active participation
They regularly vote in AGMs and are committed to the external debate around ESG issues with involvement in several forums and debates.
Integration
They have developed and integrated their own proprietary ESG rating system allowing all fund managers to carefully consider ESG risks when building the portfolio of assets to invest in.
Independence
The Responsible Investment team operate as a stand-alone investment desk, offering independent analysis and research.
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Contact us

Have a query? Speak to your usual Retirement Consultant or contact our dedicated Retirement team on 0800 032 2990

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FOR UK FINANCIAL ADVISERS ONLY
Liverpool Victoria Financial Services Limited, registered in England with registration number 12383237. County Gates, Bournemouth, BH1 2NF, UK