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Featured Video - Understanding Smoothing – LV= Smoothed Managed Fund range

Looking to reduce the impact of market volatility on client investments?

LV=’s Smoothed Managed Fund range has a built-in smoothing mechanism uniquely designed to reduce the impact of daily market volatility.

So how does it work?

Our smoothing process uses a daily average of fund prices from the past 26 weeks to reduce daily market fluctuations.

So, it’s based on what’s happened in the past rather than on speculation - making it simple, transparent, and easy for your clients to understand.

During the first 26 weeks of investment, clients’ funds are valued at the underlying price. After week 26, the smoothing mechanism kicks-in.

If markets are growing then you can expect to see smoothed prices increasing at a slower rate than the underlying prices.

But if markets are falling or fluctuating, then the smoothing mechanism will help protect investments against sudden volatility.

This extra protection is valuable for lots of client types, such as cautious investors, and retired investors.

Our Smoothed Managed Fund range can be accessed via our:

Pension (Flexible Guarantee Funds)

Bond (Flexible Guarantee Bond)

And ISA* (LV=ISA) products.

Find out more at Alternatively speak to your retirement consultant or call us on 08000 850 250.

Investment value can go up or down. Clients may get back less than they paid in.

*The LV= ISA is a non-profit investment therefore is not eligible for mutual bonus.

Featured video - Explaining Smoothing for clients

Looking to grow your investments but worried about the ups and downs of the market?

The LV= Smoothed Managed Fund range could be what you’re looking for.

Smoothing helps reduce the stress of investing to offer you more tranquillity.

It gives your investments the potential to grow while helping protect what you’ve saved so far.

We use smoothing to average out the short-term ups and downs that come with stock market investing, so your money is better protected against sudden market volatility that can often induce anxiety.

Smoothing won’t protect funds against sustained poor market conditions, but it helps give stability and more peace of mind.

Here’s how it works.

After 26 weeks investment value moves to a smoothed averaged price, which is an average of daily fund prices from the past 26 weeks.

When markets are growing, smoothed prices will increase at a slower rate than the underlying prices. When markets are falling or fluctuating, the smoothing mechanism will help protect your investments against sudden volatility.

This is why the LV= Smoothed Managed Fund range is ideal if you want to reduce the risk to your investment and help protect the money that you’ve accumulated so far.

Our Smoothed Managed Fund range can be accessed via our:

Pension (Flexible Guarantee Funds),

Bond (Flexible Guarantee Bond),

And ISA (LV=ISA) products.

To find out more, speak to your financial adviser.

The Smoothed Managed Funds are stock market related investments so you aren’t certain to make a profit and may get back less than you invested.

LV= Doctors Services

The LV= Doctor Services app helps you look after your health.

Whatever your medical concern.

Wherever you are.

Download the free LV= Doctor Services app from your usual app store.

Enter your email address and password to log on and complete a few personal details to get started.

LV= Doctor Services gives you fast, convenient access to the expert medical services.

Let's take a look.

Remote GP

Book a GP consultation to talk to a UK based doctor over the phone or video.

You can also chose the gender of your doctor you're most comfortable with.

Choose the time that suits you and find out more about your doctor before your appointment.

You'll receive an email confirmation as well as a reminder in the app itself.

Remote GP allows you to see a doctor through your phone wherever you are.

Prescription Services

If your doctor recommends a course a of treatment you'll be offered a private prescription.

Your private prescription will be emailed or sent to your pharmacy within 1-2 hours.

Second Opinion

Get a second opinion if you're worried or unsure about a confirmed diagnosis... whatever the condition.

You'll need your medical records. But don't worry - the app will guide you through how to do this.

Speak to a UK based medical specialist best matched to your diagnosis.

Helping you make a well-informed decision about your health.

Supporting your client with Income Protection

We know that when you're recommending income compensation to your clients you want to be sure that they're getting the right cover that fits their unique needs.

That's why our range of income protection solutions has been designed to protect your client whether they're working, not working, or getting back on their feet. Our income protection is easy to understand, all the features come as standard.

So your client can access our great benefits including Parents and Child cover, Rehab Support Services, LV= Doctor Services and more at no extra cost, covering them against more of life's challenges. And we have a range of options to suit different client needs. As well as our full income protection we now for a budget version with a 12 month time period as well as our current 24 month budget option.

This gives your clients all the same features as our full version but their claim period will be capped at 12 or 24 months depending on their chosen option. Find out more by visiting the adviser site or contacting your account manager

Income Protection: Customer Story

My name’s Chris Nicolaou. I’m a managing director at a mortgage brokers in Hampshire.

I’m married with three children, two of them pretty much left home, one’s still hanging on in there.

I took out an income protection policy some years ago. I took it out really to run along side my life and critical illness policy. It seemed a good idea that if something was going to pay a lump sum to pay of the mortgage off and I still wasn’t working, it made sense to keep the income coming in – cash being king at the end of the day.

My main hobby is motorbikes. The wife hates them. But it was something I’ve done as a little kid, always have done, and done hundreds of thousands of miles on these things.

It was a normal day, out with friends. Wife funnily enough had just come home from work, she runs her own business, she’d just came home from work . So said a quick goodbye, went up the road on the bike and we went off. It was a beautiful sunny evening, on a Wednesday, just outside of Guilford and then the dreaded thing happened where you are on a position where you’ve come of the motorbike and done a lot of damage. Air ambulances and ambulance and police and everything, it was a horrendous accident. Ended up breaking both my legs. Got rushed into St George’s hospital. The trauma ward there were fantastic, absolutely brilliant but they weren’t sure if they were going to save one of my legs, which was quite worrying at the time. But they managed to put me back together. From there I went over to, that was St Georges in Tooting, from there I was transferred to Parkside private hospital in Wimbledon, where the surgeon took a look and I think he quite enjoyed the fact that this is going to take some putting back together. We had pins and new ligaments put in that they grew from stem cells and they just did a fantastic job.

I had seven operations in all, in and out of hospital really for the last eighteen months, last one was last November, sorry last September was my last operation and all being well that should be it for now apart from physio.

One thing I didn’t know was that the NHS will not help when it comes to physio and the costs of it.

The claims process was fantastic with LV=. We had a claims manager who looked after me, he told me the information that was required and we sent it in and he basically looked after me all the way through. If I had any questions he was always on the other end of the phone. It was just nice to deal with a person as apposed to a computer system that may have said yes or no.

I would advice any adviser, to talk about this more to their clients. It’s so important to actually have this policy in place. I think what we’ve done in the past is maybe looked at critical illness and that’s used up the budget, and because of that the income protection side has fallen by the wayside. But we are there to advise our clients because our clients don’t know what they don’t know. And if they need to find just a few more pounds just to put something in place, whether it be the budget or full blown IP, Income Protection plan, then we need to be talking to our clients about it and let them make the decision as to say ‘well no, I don’t want this’ as apposed to us not talking about it.

What I would say to other advisers is just run through, perhaps show them this story. Just show that things can go wrong and they go wrong really quickly – there’s no lead up of it will happen tomorrow or next week, it just happens and it happens in a flash! And all of a sudden your life is upside down, so talk to your clients about it.

Income Protection: Objection Handling

If you’ve not got income protection, take it! It really is the most important thing.

Well I’m Chris Nicolaou. I’m a managing director of a mortgage brokers in Hampshire.

You know things can go wrong, and they go wrong really quickly. There’s no lead up of it will happen tomorrow or next week – it just happens and it happens in a flash and all of a sudden your life is upside down. So talk to your clients about it.

One thing you don’t this is that it’s going to happen to you so you always think it’s other people, and ‘I don’t get ill’, ‘I’m not going to have an accident’, ‘what’s the chances are?’ and I think the same, I thought the same. You know it’s one these policies I left and I thought, ‘shall I keep it going?’ ‘I thought, oh well, it’s not overly expensive, we’ll leave it there.’ And blimey! It was such a life saver to have it.

I’ve ridden a motorbike, it’s just for fun, it’s a toy, and I’ve had them for years, done hundreds of thousands of miles on these things and we were out on a Wednesday evening. Beautiful summers day with friends and it was one of those days that all of a sudden change your life.

It does happen, things do go wrong and when they go wrong the first thing that gets hit, apart from obviously the family life, is the income. It needs protecting!

And when I actually took the income protection out, one of the things that I did really, was that I took out just enough – so I didn’t take out as much as I could, but I took out enough to see me through. But it paid the bills and it kept the family unit safe.

So all insurance comes with a cost but sometimes I think ‘well it’s maybe easier to find a few pounds a month for an income protection policy than trying to find a mortgage payment when you’re not earning.

Had I taken out the budget income protection that would have paid me for two years, well I claimed on mine for 18 months, so it would have fitted that. However, if my operation had gone slightly the wrong way, I could have claimed on it to the age of 65, but it’s worth having quotes on both.

I wasn’t surprised I didn’t get any state benefits because the state benefits are really non-existent and if they are there, it’s such a small amount of money.

If you’re employed, I think it’s normally three months or six months full pay, then half pay – it will stop after a time. One of the LV= obviously you can always use the deferred periods to match that and then it’s down to company discretion. I don’t know many employers that will actually pay when they don’t have too.

One of the things with any income protection, one of the myths are they don’t pay out, they do! And over 90% of the time. I know that because I’m in the industry. But you do still have that little bit of worry when you put a claim in, ‘I wonder?’ But LV= did, they did what they said they would do and they continue to do that.

When you start to recover, a lot of people said to me in the past, ‘well as long as I can pick up the phone, I can run my business’. I thought that myself. I can still speak to my clients, so long as I have a use of an arm and talk, everything will be well. That’s just so not the case. When you’re on a huge amount of painkillers, morphine, such like, just to keep the pain at ease, you’re in a position where you cant actually focus that well.

My wife ended up taking some time off to look after me. I had to get different things in the house because I was in a wheelchair for several months. So by the time you get a hospital bed downstairs, that was about £1000 to hire, and then about £200 a week to hire. And then plus all the other bits: I had to buy a wheelchair, ramps to be able to get outside in the case of emergencies. All these extra costs and the impact that has when your not earning any money, the impact that has on the business as well as your savings - you know the bit you actually get from somebody like LV= is an absolute lifesaver because it just tops up, it makes up that bit where you would really eat into your savings and so quickly.

I still look back at the policies we’ve sold and it’s so heavily weighted towards the life and critical illness side of things and really talk about income protection as almost like an add on to that. Almost to a degree that it’s almost an afterthought. Actually it should be so the other way around. In an ideal position like I was, I had the life and critical illness and the income protection was to run along side that. Because, as I say, if you pay of your mortgage, if you heaven forbid, you had a critical illness or diagnosed with a critical illness and that paid off, you’ve still got to replace that income. That’s done its job with no mortgage, the bills will still keep coming in: you will still have your food bill; still have the on-going utility bills to pay for, you’ll still need to run the car. None of that goes away so what can happen without the income protection is that you don’t actually use all that money to pay of your mortgage off with the critical illness. You tend to pay maybe part of it off and then use some, which will eventually run out in time, to actually keep you going on a monthly basis. Whereas a policy with LV= took me to age 65 so, well even I’m you know it takes me to retirement well the mortgage will be gone by then.

The impact of not having any cash is an horrendous thing because it actually stops you getting better as well because you start to worry about money, how much things are going to cost; the impact it has on your family and your children - so it’s an incredibly important policy and something that I think would be, almost an injustice really, not to actually talk to our clients about this policy and make them aware, really make them aware, of how serious this can be. It certainly changed my thinking.

Business Protection: Key Person Cover

Business as usual can suddenly become very difficult if one of your key employees, someone the business heavily relies on, dies or suffers a serious illness.

How long could your business survive without them?

Different types of businesses will have different key people.

They could be your best performing sales person, a software engineer, one of the business owners.

And the risks associated with losing a key person can include:

Production being stopped

Sales targets being missed

the loss of important business contracts

the business might have to pay large penalties if goods or services aren't delivered

and your bank might lose confidence business loans can be repaid and demand the debt is cleared

Key Person cover is a type of insurance that can protect the survival of your business.

It pays out a lump sum if your key employee dies or is diagnosed with a critical illness.

You can use the money to:

or clear business debt that would have to be repaid due to the loss of a key person

help cover recruitment costs

make up any loss in profits and keep the business running whilst you're looking for a replacement

Key Person cover can give your business the breathing space needed during a period of instability and uncertainty.

To find out more, please speak to your financial adviser.

Business Protection: Share & Partnership Protection

What would happen to your business if one of the owners suddenly died or suffered a serious illness?

Could you afford to buy their share?

If not, the affected owners family might sell their shares to a competitor or someone else completely unsuitable.

This can be disastrous for the long term survival of the business you've worked hard to build.

Business owners are usually the life-blood of the firm, with staff relying on their experience and knowledge.

Their sudden loss can heavily impact morale, leaving staff worried about the future of the business and their jobs.

Shareholder and Partnership Protection is a type of insurance that gives surviving business owners the money needed to buy the affected shares.

It can help ensure you keep control of the business and give staff confidence that their jobs are safe.

The money also ensures that the deceased owner's family are looked after and receive full market value in exchange for their inherited share of the business.

You probably already protect many of the important things that keep the business running smoothly, like property, fleets and stock.

So it makes sense to insure your most valuable assets, your business owners.

For help with setting up Share or Partnership Protection, please speak to your financial adviser.

Hear how LV= and Columbia Threadneedle Investments collaborate closely in the management of our Smoothed Managed Fund range.

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.

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

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.


Take a closer look at our Flexible Guarantee Funds

Looking to de-risk client portfolios against market volatility without sacrificing growth potential? Take a closer look at our Flexible Guarantee Funds.

Clients getting close to retirement are often more risk-averse and need a secure and cost-effective investment solution like the Flexible Guarantee Funds.

Three funds are available with varying degrees of risk: Cautious, Balanced and Managed Growth.

They are managed to our mandate by Columbia Threadneedle Investments and risk-rated by leading fund analysts – Defaqto, Dynamic Planner, and Synaptics.

They’re suited for clients with lower risk profiles and designed for a longer-term horizon (5+ years).

They help smooth out market volatility with a transparent 26 week averaging process while an optional guarantee can lock in investment gains at any time.

The wrapper charge is 15bps when Flexible Guarantee Funds make up 100% of the pension investment, or 25bps when the funds are used alongside other investments.

To find out more visit or call us on 08000 850 250.

LV= Flexible Guarantee Funds Bridge

Give your clients a smooth bridge into retirement with our signature hybrid which has the potential for growth (with optional guarantees) for a fixed period.

The LV= Flexible Guarantee Funds Bridge is a packaged hybrid solution for you and your clients to consider.

Before reaching retirement, most of your clients will feel in a position of relative stability, in employment receiving a regular income and by age 75 the chances are they’ll have a clear sense of what they want the rest of the retirement to be like and the money they’ll need to support this.

But a lot can happen during the early years of retirement and your clients need both flexibility and security during this time. The LV Flexible Guarantee Funds Bridge can give your clients a perfect bridge over this period of uncertainty. It’s been designed for those at the start of their retirement who want both flexibility and the potential for growth.

It works by investing your client’s pension pot in a SIPP wrapper provided by the LV= Flexible Transitions Account, then all you have to do is allocate your pension benefits between a hybrid of two products.

The LV= Protected Retirement Plan is our version of a Fixed Term Annuity and provides the guaranteed regular income which is paid into a SIPP bank account. Your client can choose to hold the income there to help with tax planning, transfer it into their domestic bank account or reinvest it. It even provides the flexibility for ad hoc income payments to be made.

The potential for growth is provided by a choice of three Flexible Guaranteed Funds, a cautious, balanced or managed growth option all risk rated by distribution technology. All of the funds come with investment smoothing as standard and optional capital guarantees. This signature hybrid solution can be arranged with one simple illustration and one signature-less online application which offers your client one account, one income payment date and one annual statement.

Find out more about how the LV=Flexible Guaranteed Funds bridge can give your clients the perfect bridge into retirement by speaking to your usual LV contact or by visiting

The LV= Flexible Guaranteed Funds Bridge is the simple way for you and your clients to consider, select and purchase the most popular LV= blend of retirement income solutions.

The LV= Flexible Transitions Account

Flexible Transitions Account

Welcome to the Flexible Transitions Account from LV=, offering a solution to the challenges facing clients who have multiple pensions with different providers.

It provides a cost-effective alternative to existing plans with high charges, putting the client in control of their retirement and taking advantage of the wider range of options for accessing their pension introduced by Pension Freedom and Choice.

It brings multiple pension pots into one convenient, award-winning and cost-effective plan, which provides an outstanding choice of flexible and guaranteed retirement income options.

We want to make life easy for you and your clients.

You’ll have the flexibility to move between investments and benefit options within the same account, without the need for complex internal transfers and lots of paperwork.

Giving you time to do other things.

Picking the right investment option is vitally important and the Flexible Transitions Account provides your clients with the ultimate level of flexibility over how their funds are invested; keeping pace with changing needs and circumstances.

And to support you through each stage of the process, a host of services and online tools are always available.

The Flexible Transitions account provides great value with access to low cost, high value investment funds including market leading passive and risk rated solutions.

Clients have added security with options to help provide protection against market fluctuations and provide a guaranteed income in retirement.

Our Flexible Guarantee Funds offer a built in smoothing mechanism to take away the volatility of pension investments and optional guarantees to protect against unforeseen market changes.

What’s more, our fixed term annuity, the LV= Protected Retirement Plan, can be used as a trustee investment within the Flexible Transitions Account to create additional income flexibility.

The Flexible Transitions Account provides bespoke retirement investment solutions through Discretionary Fund Management and pure SIPP investment.

And to support you provide the right information to your clients, we’ve worked together with a number of key providers of back office systems and our panel of six of the leading DFM providers.

As the largest friendly society in the UK, owned by our members and not shareholders, we can channel our energy and resources into doing what’s right for our customers – including financial professionals just like you!

Being the most trusted life insurer means that in addition to providing award-winning products we also provide the right support, training, development and technical guidance when you need it most.

If you’d like to find out more you can contact us on the details shown.

Introduction to Flexible Guarantee Investments

Investing money can be stressful, especially when faced with a range of options to consider how to fund ones retirement - it's crucial to make the right choices. Thankfully LV= is here to help. We've created a set of funds called the LV= Flexible Guarantee Investments to help take some these worries away.


I’m Jon from LV=

Investing money can be stressful for your clients.

In 2014 the Chancellor introduced the revolutionary pension freedom and choice changes, which means your clients now have access to a range of options when thinking about how they can fund their retirement.

But of course it’s crucial that you can help your client make the right choices, especially when it comes to their investments.

Thankfully, LV=’s here to help.

We’ve created a set of funds called the LV= Flexible Guarantee Investments to help take some of these worries away.

We selected leading fund managers, Columbia Threadneedle to manage these funds for us so we can help provide the potential for your clients to grow their investment, whist also offering protection from market volatility.

Let’s take a closer look…


With our Flexible Guarantee Investments, you can choose one of three risk-rated, multi-asset funds that all offer a unique average price mechanism. This helps to smooth out the peaks and troughs of short-term market uncertainties.

The smoothing process is transparent and simple – Let me show you

Your client invests in the underlying price and this is used to value their investment for the first 26 weeks. After this the smoothing mechanism kicks in so it’s now valued at the averaged price from here on.

This has the benefit of absorbing and reducing the effects of short term market volatility.

The mechanism is tried and tested – it even operated normally throughout the credit crunch!


The funds have the added benefit of an optional capital guarantee which your clients can purchase at any time.

This makes it possible to guarantee a known value at a known point in the future regardless of what happens to the stock market in the meantime.

What’s more, the guarantee can be switched on or off at any time, which means your client can lock in any existing investment growth, whilst still benefitting from any potential future increases in value.


These features may make the LV- funds the perfect choice for you and your client, especially if they’re looking for investment growth but are concerned about the impact of stock market volatility.

The three funds invest in a mixture of different assets to offer a choice of risk levels – to suit different attitudes towards investment risk.

Clients can invest in the funds through the LV= Flexible Guarantee Bond, or as part of a personal pension.

Both options feature competitive charges- including a loyalty discount which acts to reduce the annual management charge after a qualifying period.

And don’t forget, with LV= your clients also have access to our range of member benefits, including discounts on home, pet and travel insurance, and 24/7 access to our member care line.

To find out more about the LV= Flexible Guarantee Investments, please contact your usual retirement consultant, call our Retirement Desk on 08000 850250 or check out

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