LV= Smoothed Pension fund options

More information on our Smoothed Pension funds and the options available

Overview

Understanding how your investment is managed

Plant, toy, and a piggy bank

What the fund invests in

The three funds are unit linked, multi-asset investments, each containing a mix of shares (equities), commercial property and fixed interest investments, such as corporate and government bonds.

The funds are 'non-profit' investments, which means you'll get the benefit of the growth in the funds, but these funds won’t be eligible for a mutual bonus.

Who manages the funds

We manage the Smoothed Managed Funds in partnership with Columbia Threadneedle Investments, who are one of the UK's largest fund managers with over £385bn* in assets under management.

We work together to maximise the funds' potential for growth while maintaining a consistent level of investment risk.

*Source: www.columbiathreadneedle.co.uk as at 31/09/20

Responsible investing

Our top priority is to provide you with a fair return on your investment. But, we’re also committed to a philosophy of responsible investing.

You can read more about our approach here

LV= Smoothed Pension Fund Options

A choice of three fund options designed to suit different attitudes to risk

LV= Smoothed Managed Cautious Fund

  • This fund option is designed to provide long-term steady growth together with a low level of investment risk.
  • The fund invests, either directly or indirectly, in a diversified portfolio of fixed interest securities, equities, property, cash and other related instruments.
  • The fund aims to avoid sharp rises and falls by averaging the investment return over a rolling 26 week period. It builds up to this from day two of your investment.

LV= Smoothed Managed Balanced Fund

  • This fund option is designed to provide long-term moderate growth together with a low to medium level of investment risk.
  • The fund invests, either directly or indirectly, in a diversified portfolio of fixed interest securities, equities, property, cash and other related instruments.
  • The fund aims to avoid sharp rises and falls by averaging the investment return over a rolling 26 week period. It builds up to this from day two of your investment.

LV= Smoothed Managed Growth Fund

  • This fund option is designed to provide the long-term growth together with a medium level of investment risk.
  • The fund invests, either directly or indirectly, in a diversified portfolio of fixed interest securities, equities, property, cash and other related instruments.
  • The fund aims to avoid sharp rises and falls by averaging the investment return over a rolling 26 week period. It builds up to this from day two of your investment.

Optional Guarantee

Protect your investment with an optional guarantee

We know it’s vital to feel comfortable with your investment choices. That’s why when you invest in our Smoothed Managed Cautious Fund you have the option of buying a capital guarantee

  • If you invest in our Smoothed Managed Cautious Fund you can benefit from an optional 10-year capital guarantee. This can be purchased when you first invest, when further investments are made, or on the expiry of a previous guarantee.
  • This additional security can be particularly useful if you wish to preserve your investments and you're worried about market downturns.
  • Your guarantee means that at the end of the term, your fund's value will be at least the value on the start date minus any withdrawals, including any ongoing and ad-hoc adviser charges. Naturally, if your fund is worth more than the guaranteed amount you’ll get the extra as well.

Understanding the asset mix of your fund

We believe it’s important to help you understand where your money is being invested. The table below shows the spread of investment and the breakdown of each smoothed fund.

The spread of investments for our LV= Smoothed Managed Funds as at 30 June 2021
Assets Cautious Balanced Growth 
UK Equity
6.0% 10.0% 11.0%
US Equity
6.0% 10.0% 13.0%
European Equity
2.0% 4.0% 6.5%
Asia Equity ex Japan
2.5% 4.0% 6.5%
Japan Equity
2.0% 3.0% 3.5%
Emerging Market Equity 2.5% 4.0% 6.5%
Property
3.0% 5.0% 7.0%
UK Gilts
14.0% 10.0% 6.5%
US Treasuries
12.0% 5.0% 3.5%
UK Corporate Bonds
18.0% 13.0% 9.0%
Overseas Corporate Bonds
18.0% 13.0% 9.0%
High Yield Corporate Bonds
5.0% 5.0% 3.0%
UK Sustainable
1.0%  2.0%  3.0% 
Global Sustainable
1.0%  2.0%  3.0% 
Cash
2.0% 2.0% 2.0%
Dynamic Real Return
5.0% 8.0% 7.0%

Total Equities and Property 28.5% 48.0% 63.5%
Assets Cautious Balanced Growth 
UK Equity
6.0% 10.0% 11.0%
US Equity
6.0% 10.0% 13.0%
European Equity
2.0% 4.0% 6.5%
Asia Equity ex Japan
2.5% 4.0% 6.5%
Japan Equity
2.0% 3.0% 3.5%
Emerging Market Equity 2.5% 4.0% 6.5%
Property
3.0% 5.0% 7.0%
UK Gilts
14.0% 10.0% 6.5%
US Treasuries
12.0% 5.0% 3.5%
UK Corporate Bonds
18.0% 13.0% 9.0%
Overseas Corporate Bonds
18.0% 13.0% 9.0%
High Yield Corporate Bonds
5.0% 5.0% 3.0%
UK Sustainable
1.0%  2.0%  3.0% 
Global Sustainable
1.0%  2.0%  3.0% 
Cash
2.0% 2.0% 2.0%
Dynamic Real Return
5.0% 8.0% 7.0%

Total Equities and Property 28.5% 48.0% 63.5%