LV= adds pension to smoothed managed fund range and improves charging structure
- Smoothed Pension starts smoothing from day two
- Tiered charging structure now includes aggregated fund discounts based on holdings across multiple LV= Smoothed Managed Funds
Savings and retirement specialist LV= is launching Smoothed Pension to complement its range of Smoothed Managed Funds.
Designed to reduce short-term market volatility for cautious investors, the LV= Smoothed Pension allows smoothing to begin from the second day of investment, gradually averaging daily unit prices up to 26 weeks.
This improvement in gradual smoothing on entry helps further reduce customers’ investment volatility, and experience a steadier investment journey right from the start of their plan. The LV= Trustee Investment Plan (TIP) launched last year, also offers the same gradual smoothing mechanism after two days and can be held as part of a Self-Invested Personal Pension (SIPPs) or Small Self-Administered Scheme (SSAS).
LV=’s tiered pensions charging structure has been boosted by aggregated fund size discounts, based on the amounts held by one person across multiple LV= Smoothed Pension and Smoothed Managed Funds. Customers holding more than £100,000 are eligible for discounts of 0.05%, increasing to 0.15% based on the total amount invested. Charges will be reduced from 0.9% to 0.75% for investments over £500,000.
LV=’s Smoothed Managed Fund range includes three global multi-asset funds: Cautious, Balanced and Growth, which are risk-rated as 3, 4 and 5 respectively by leading market analysts Defaqto and Distribution Technology. A 10-year guarantee option is available for the Smoothed Managed Cautious Pension fund. This can only be added at the start and investors can choose to remove it following a future review.
LV= Smoothed Managed Funds are managed by the global asset manager Columbia Threadneedle Investments to a mandate set by LV=. The funds, available in pensions, bonds and ISAs, are most suited to investors with a low risk profile.