Smoothed managed funds

Reducing risk with smoothed funds

Overview

Smoothed Managed Fund range

When making an investment, you ought to consider what's more important: investment performance, accessibility, or a combination of the two. Our Smoothed Managed Fund range is designed to offer you a stable, but flexible investing experience with less worry. 

Key Features

Our Smoothed Managed Fund range is made up of the LV= Smoothed Pension, Bond, LV= ISA and the LV= TIP.

While one product may be more suited to you, they all have a few things in common:

  • Each product benefits from our unique smoothing process to help level the peaks and troughs of the stock market.
  • You can choose from three independently risk-rated investment funds to meet your attitude to risk.
  • Funds are managed to our objectives with leading international investment manager, Columbia Threadneedle Investments.
  • Our smoothed funds have low impact charges, meaning your investment won’t be eaten into by high fees.
  • Should you pass away while you hold your policy, we will make a payment of a percentage of the fund value to your family.
  • Optional guarantees are available to secure capital on Cautious fund investments.

Smoothing

Reducing the impact of market ups and downs

The LV= Smoothed Managed Funds incorporate a unique averaging mechanism called ‘smoothing’ to help protect investments from the impact of short-term market movements.

Take a look at the video below to understand how smoothing works for our LV= Smoothed Pension and LV= TIP.

For customers investing in our Bond or ISA, the process is a little different. In the first 26 weeks – when you invest in our smoothed funds, the investment is valued at the underlying price for the first 26 weeks. After the first 26 weeks – the smoothing mechanism kicks in and your fund is valued at the average daily price of the previous 26 weeks.

Please note, smoothing can be suspended if there are extreme market conditions, or at our discretion. Past performance is not a reliable indicator of future results.

 

Understanding our unique smoothing process

View video transcript

Next Steps

Getting the most from your money

To help you get the most from your money, you can speak to a financial adviser. If you don’t have a financial adviser you can find one near to you on unbiased.co.uk, or you can have a chat with one of our investment advice specialists.

Please note that the information given on these pages should not be seen as advice to take out this product.