Important information about LV= TIP

LV= Smoothed Managed Funds Trustee Investment Plan (LV= TIP)

LV= TIP

As we move towards building a secure and long term mutual future, we will be making some enhancements to the LV= Smoothed Managed Funds range.

From 12 December 2022, your investments in LV= TIP on behalf of your scheme members will be converted to a unitised with-profits investment. By converting the fund to with-profits, your LV= TIP investments will be eligible to benefit from a mutual bonus and participate in the future profits of LV=. This will be added to your LV= TIP investments when LV= declares that a mutual bonus is payable.

Nothing else about your LV= TIP investments is changing as a result of this conversion to with-profits. They will remain invested in the same fund, with the same asset allocation, the same smoothing process and the same charges.

You should be aware, however, that any mutual bonus amounts added to your plan in future will not be guaranteed, and can be withdrawn in extreme market conditions. For more information on our mutual bonus, please see our FAQs.

We have also enhanced the investment options available under your LV= TIP investments by increasing the range of investment options available to you. Two new funds were recently added to the Smoothed Managed Funds range – 

  • Smoothed Managed TIP Extra Cautious
  • Smoothed Managed TIP Impact Growth

For more information about these new funds, and whether they may be suitable for you, please contact your scheme’s, or your Designated Member’s, financial adviser. 

There is no action you, or the Designated Member, need to take to benefit from these product enhancements. The conversion of your LV= TIP investments to with-profits will be done automatically. 

Please note, once mutual bonus amounts start to be allocated which, at the earliest, will be after your LV= TIP investments have been held for a full 12 months after the date we convert the policies to with-profits, mutual bonus amounts will start to be shown in the bulk scheme valuation information we provide you with.  

You may therefore wish to reflect the mutual bonus amount in the annual statement or scheme valuation information you make available to your scheme members. We acknowledge, however, that this is a matter for your scheme to decide. 

In the unlikely event that you, or the Designated Member, don’t want an LV= TIP to convert to with-profits you always have the option, of course, of surrendering the LV= TIP and having the money paid into your registered pension plan bank account. It can then be reinvested in other asset types within your scheme.

Useful documents

Important documents about the enhancements we're making to the LV= TIP

You should read the following documents on our LV= TIP for more information about the enhancements we are making.
The information in these documents shouldn't be considered as advice. If you're unsure, you should speak to your scheme’s, or your Designated Member’s, financial adviser.

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