Changes to LV= Pension Fund Range

We're here to inform you about a change to the LV= Insured Pension fund range

Changes to LV= Pension Funds

We want to let you know about some changes we're making to the LV= Sterling Liquidity (s2) fund

The changes will have a direct impact on those invested in the fund

What’s changing?

We’ve appointed Vanguard as the underlying fund manager of the LV= Sterling Liquidity (s2) fund, which is currently managed by State Street Global Advisors (SSgA). This means that the assets held within the LV= Sterling Liquidity (s2) fund will move from SSgA to Vanguard during the week starting 15 July 2019.

If you have money invested in the fund, we’ve written to you about the changes.

What are the benefits?

Our key driver is to ensure that our customers, new and existing, receive value for money.

By moving the underlying assets to Vanguard, we’re able to reduce the total fund charge investors pay, whilst providing a similar risk profile investment in a money market fund.

Changes to the LV= Sterling Liquidity (s2) fund

To help you understand where your money is invested, we are changing the fund name to include the name of the new underlying fund. There will also be a reduction in the total fund charge (TFC) of your LV= fund.

The fund benchmark isn’t changing and performance of the fund will continue to be measured against LIBID 7-day GBP. The fund will also continue to invest in similar money market assets as it does now and will remain a low risk, money market fund.

A comparison of the fund before and after the changes is set out in the table below.

How the changes will affect your fund

Compare the fund before and after the changes


Current fund New fund (after changes)
Fund name LV= Sterling Liquidity (s2) LV= Vanguard Sterling Short-Term Money Market (s2)
Fund code 1248 1248
Total fund charge (per year) 0.15% 0.10%
Benchmark GBP 7-day LIBID GBP 7-day LIBID


Current fund New fund (after changes)
Fund name LV= Sterling Liquidity (s2) LV= Vanguard Sterling Short-Term Money Market (s2)
Fund code 1248 1248
Total fund charge (per year) 0.15% 0.10%
Benchmark GBP 7-day LIBID GBP 7-day LIBID

More information

A little more about the changes

The value of your investments will not be impacted by this change. However, the future value will depend upon the performance of the new underlying investments selected.

Unlike the current underlying fund, the new underlying fund from Vanguard has not been rated. Vanguard’s decision not to rate the fund is in line with recent reforms placing greater emphasis on fund providers’ internal credit assessments and risk monitoring and reducing reliance on rating agencies. Vanguard will utilise industry-leading risk controls to maintain a thorough, robust and high quality portfolio. Furthermore, the fund has been designed to meet EU regulations.
The new underlying fund is a newly established fund, and as such it does not have a comparable past performance record (performance data will be available after one year from launch). However, Vanguard is one of the leading asset managers in the world, with £38 billion assets under management in its UK fund range as at 30 April 2019. Before Vanguard launches any new fund it carries out comprehensive market testing to determine likely demand to ensure that a fund grows to scale. Vanguard will be making this new fund available on its own platform from outset as well as to all other platforms and providers, which will allow a broad range of investors to access the fund from launch.

FAQ's about the changes

Why Vanguard Investments UK Limited?

Founded in 1975 in the United States, Vanguard is one of the world’s leading fund managers, and vocal and effective champions of passive fund management. They believe in giving investors simple access to broadly diversified markets at the lowest possible cost. The less you pay for investments, the more you get to keep from your potential returns.

Their investment philosophy stands for high-quality funds and exceptional value. Vanguard, like LV=, are a mutual company sharing many similar qualities and we believe there is a great synergy between the two companies.

What does this mean for me?

The name of the existing fund will change, as set out in the table. The new fund name and total fund charge will apply from the transition date, which will be during the week of 15 July 2019. The number of units you hold, and the value of these units will not be affected by this change. However, the future value will depend upon the performance of the new underlying investments selected.

What action do I need to take?

There are two choices available to you:

a) If you are happy with this change, you don’t need to do anything. The new fund name and total fund charge will apply from the transition date. As stated previously the number of units held in your plan and their value will not be affected.

b) You can switch your holding free of charge into one or more of the other funds available from LV=. We strongly recommend that you should discuss this with your financial adviser before taking any action as they will have details of the other investment options available to you.

The value of your investments will not be impacted by this change. However, the future value will depend upon the performance of the LV= Vanguard Sterling Short-Term Money Market (s2) fund or any alternative fund(s) you select.

I need more information, what should I do?

We’ve answered some of the most common questions we’re asked when we make changes to funds in the Questions & Answers document (PDF, 122KB) which we enclosed with the letter we sent, outlining the changes.

If you have any questions which are not covered in the Questions & Answers document (PDF, 122KB), please contact your financial adviser, who has also been notified of these changes. If you’re no longer in contact with your financial adviser, you can call us on:

0800 0322 990

Select option 2

For textphone please dial 18001 first

We will record and/or monitor calls for training and audit purposes