Online Services:


LV= strengthens Smoothed Managed Funds to include ESG criteria


Savings and retirement specialist LV= is adapting the investment strategy of its Smoothed Managed Funds to include greater emphasis on environmental, social and governance (ESG) criteria.

To ensure that the asset allocation across smoothed fund portfolios are in line with UN Sustainable Development Goals, LV= has developed a Responsible Investment Framework supporting the targets set for 2030.      

Investors are increasingly taking account of ESG issues. The LV= Wealth and Wellbeing Monitor, a survey of 4,000 people, found that more than a quarter of mass affluent savers (26%) plan to be more environmentally conscious over the next year. They were also twice as likely (10%) to be worried about how unexpected drops in the stock market can affect the value of their pension compared to the general public (5%).

LV= Smoothed Managed Funds are designed to help deliver low-volatility returns for risk-sensitive clients. They are most suitable for cautious investors with a ‘low’ to ‘low-medium’ risk profile who are likely to be nearing, or in retirement.

There are three fund options available: Cautious, Balanced and Growth, which are risk rated as 3, 4 and 5 respectively by Defaqto & Dynamic Planner. ESG considerations are regularly monitored by the LV= Investment Committee, who can act to exclude or engage directly with firms to drive positive change. Asset management is undertaken by the global asset manager, Columbia Threadneedle Investments

“The popularity of LV=’s Smoothed Managed Funds are firmly on the rise, with advisers increasingly turning to funds that can demonstrably show they can smooth out the volatility of investments markets whilst returning attractive growth for their more cautious investors.”

“Investors are increasingly passionate about ESG and we feel they should not need to compromise on this to achieve strong returns.”

“LV= corporate values align strongly with the UN Sustainable Development Goals and since 2011, ESG has always been well integrated across LV= portfolios. By strengthening the framework through which we apply our ESG principles, advisers and their customers can now have even greater peace of mind about both where their pensions and savings are invested coupled with a strong track record of low volatility investment performance that our SMF range represents.”

David StevensRetirement Director at LV=
LV= is hosting a series of webinars with Columbia Threadneedle Investments on 6th and 22nd July to discuss the investment strategy behind Smoothed Managed Funds. Titled “Powered for the future: How LV=’s Smoothed Managed Funds are positioned for stability and sustainability”, the webinars will include a Q&A session where financial advisers can find out more about the chosen approach for ESG. Register to attend the SMF webinar