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Flexible Guarantee Bond Series 3 – main features

We’re here to help protect your clients’ funds. And with our Flexible Guarantee Bond, you can make the most of its unique features to do just that. It’s an onshore investment option with three fund options – Cautious Series 2, Balanced Series 2 and Managed Growth – managed to our mandate by Columbia Threadneedle Investments.

Designed to provide long-term moderate growth, with low-level risk investment, the main features of our Flexible Guarantee Bond include:
  • Comes with an in-built smoothing mechanism – uses fund price averaging to reduce the impact of market volatility on your clients’ investments.
  • Online valuation tool for professionals - the current value of your client’s investment is just a few clicks away.
  • Funds are independently risk-rated by leading market analysts Defaqto and Distribution Technology to help you assess client suitability.
  • Optional capital guarantee available – lock-in fund value for a fixed 8 to 10-year term, helping reduce downside risk. 8 & 9-year guarantee periods only available with the Cautious Series 2 Fund.
  • It's a with-profits whole of life investment bond. Your client’s investments may go down as well as up, and they could get back less than invested.
  • Whilst there is no minimum or fixed term, our bond is designed to provide steady growth for a period of at least five years and ideally longer.

Product profile

With three layers of protection, your clients will benefit from our Flexible Guarantee Bond at any stage of their lives. See further information on target markets, risks and eligibility in the product profile.
We want your clients to live confidently. That’s why we give our members more with their Flexible Guarantee Bond.

As an investor in our Flexible Guarantee Bond, your client automatically becomes a member. This means they’re entitled to an incredible range of benefits, at no extra cost. Here’s how your client will see the benefit:
  • Putting your client’s interest first. As a mutual, we’re owned by our members. We put the interests of your clients first, rather than those of external shareholders.
  • Exclusive benefits. We offer benefits to certain with-profits members – your Flexible Guarantee Bond clients are eligible.
  • Potential investment boost with our mutual bonus after the first year. When we’re doing well and our capital position remains strong we can decide to award a mutual bonus*. At the moment, we do this by increasing the asset share of certain LV= with-profits policies by a percentage. We’ve awarded £210 million to eligible members’ policies since we introduced the mutual bonus in 2011.
  • *The mutual bonus is always at the sole discretion of our board of directors. In exceptional circumstances, the board reserve the right to take back previously awarded mutual bonuses – but this hasn’t happened to date. It’s not guaranteed to be paid every year, and the level can vary.
  • More on member benefits

6 ways to making the most of our Flexible Guarantee Bond

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As a simple, low-cost investment

Many of your clients will be looking for a straightforward investment option. Because its smoothed returns help protect against market volatility, it’s well suited to your risk-sensitive clients.

As a tactical investment

The optional capital guarantee locks-in growth after a market rally – start and stop it with flexibility.
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As a secure investment

Security is vital for many of your clients. The built-in smoothing mechanism protects your clients’ investment against downside risk.
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For tax planning

There’s no Capital Gains Tax on withdrawals from the Bond, so higher rate taxpayers can withdraw 5% each year – while just paying basic rate tax.
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For IHT Planning

Our Bond can be written on a joint or single life basis and by placing the bond in trust, clients can potentially help reduce their dependants’ IHT liability.
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For life-events planning

For clients who want to earmark funds for planned events, the Bond supports that through the guarantee option, while maintaining the potential for investment growth.

Flexible Guarantee Fund

Grow your clients’ pension fund with a reliable and low-volatile investor experience.

LV= ISA

With a simple on-boarding process and smoother investment journey, the LV= ISA protects your clients’ investments from short-term market volatility.

LV= TIP

Increase the availability of our smoothed funds for pension investors, giving your clients access to our three unique funds via other providers’ SIPPs and SSASs.
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