Overview
Smoothed Managed Funds range
Key Features
Our Smoothed Managed Funds range is made up of the LV= Smoothed Pension, LV= Smoothed 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 smoothing process to help reduce the peaks and troughs of the stock market.
- You can choose from a range of independently risk-rated investment funds to meet your attitude to risk.
- The funds are managed by our award-winning in-house team and leading investment managers.
- 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 an averaging mechanism called 'smoothing' which is designed to smooth out the impact of short-term market movements.
How does it work?
On day one your money is invested into your chosen fund(s) at the fund’s underlying unit price.
On day two the daily underlying unit prices for day one and day two are added together and divided by two.
On day three the daily underlying unit price for all three days are added together and divided by three, and so on. This process continues up to 26 weeks (roughly six months).
After 26 weeks, your investment value will usually be an average of the preceding 26 weeks. This means that for the rest of your time invested with us, however long that might be, your investment will be cushioned from the immediate impact of daily fluctuations in the market.
For customers investing in our LV= 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 that smoothing can be suspended at our discretion in extreme circumstances.
Although our smoothing process aims to reduce the impact of sudden market movements, it doesn’t mean investments won’t drop in value. It doesn't prevent losses due to a long-term falling market.
Our smoothing mechanism explained
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Please remember this stock market related investment can rise and fall in value. This means you’re not certain to make a profit and you could get back less than you invested.
Your options
Our Smoothed Managed Funds range
LV= Smoothed Bond
With a range of fund options, the LV= Smoothed Bond allows you to decide how much risk you want to take.
LV= Smoothed Pension
The LV= Smoothed Pension offers a range of multi-asset funds that are available through our Self-Invested Personal Pension (LV= SIPP).
LV= ISA
Our Stocks and Shares ISA can provide tax-efficient savings with long term growth potential, tailored to your appetite for risk.
LV= TIP
The LV= TIP is a plan which allows you access to our smoothed funds as part of your existing Self-Invested Personal Pension (SIPP) or Small Self-administered Scheme (SSAS) without transferring away.
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.
