LV= Smoothed Bond:

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Main features

We’re here to help you grow your clients’ savings, and with our Smoothed Managed Funds Bond you can make the most of its features to do just that.

Our Smoothed Bond is an onshore investment option with a range of fund options managed to our mandate by BlackRock.

Designed to provide long-term steady to moderate growth, with fund options suiting risk profiles from very low to medium risk, our smoothed bond provides:

  • An in-built smoothing mechanism - uses fund price averaging to reduce the impact of market volatility on your clients’ investments.
  • Risk rated options - our funds are independently risk-rated by multiple agencies.
  • Tax efficient investing - not liable for CGT, top slicing relief available when a chargeable gain occurs*.
  • An effective estate planning tool - our bond can be used within a trust. See what trusts we offer here.
  • Optional capital guarantee - lock-in fund value for a fixed 10-year term, helping to reduce downside risk^.

Product profile

Your clients will benefit from our Smoothed Managed Funds Bond at any stage of their lives. See further information on target markets, risks and eligibility in the product profile.
Smoothed Managed Funds Bond Series 1 product profile

The Smoothed Bond can list up to two lives assured (max. age 89), although neither of these can be the Bond owner.

It's a with-profits, whole of life investment bond making your client a member of LV=. Your client's investments may go down as well as up, and they could get back less than invested.

No minimum or fixed term. Our Smoothed Bond is designed to provide steady growth for a period of at least five years and ideally longer.

*All references to taxation are based on our understanding of HMRC rules at the time of publication and may be subject to change. 

^Available on Cautious fund investments only. If you choose a guarantee you have to buy it, it isn't free. Available at outset, or on the expiry of a previous guarantee, if available at that time.

What type of clients would the Smoothed Bond be most suitable for?

Trustees:

  • Looking to mitigate inheritance tax on large sums.
  • Who don’t have access to tax-efficient investment wrappers like ISAs.
  • Who have high CGT exposure, with no dividend allowance.
  • Want lower risk and potential above inflation returns.

Individual investors:

  • Lump sum investors who want to utilise a multi-tax wrapper approach.
  • Will pay high CGT on the returns of other investments.
  • Want to balance out their portfolio and have a healthy risk appetite.
  • Want to preserve wealth as they approach retirement.

Corporate investors:

  • Looking for tax-deferred investment solutions.
  • Want to diversify business assets without high-risk exposure.
  • Seeking investment options outside of traditional deposit accounts.
  • Want smoother returns to support cash flow planning and long-term objectives.

Client toolkit

We have put together a toolkit to support your conversations with clients about our LV= Smoothed Bond. More documents can also be found in the document library.
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Lower charges for smoothed investment journeys

Unlock exceptional value with rates starting from just 0.60%*.

Explore our charges now
*With fund size discount

Six ways to make the most of the LV= Smoothed Bond

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As a simple, low-cost investment

Our Bond is a straightforward, single premium investment option, designed to deliver steady growth over the medium to long-term.
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As a tactical investment

Optional capital guarantee can be bought on investments at outset, or upon the expiry of a previous guarantee, subject to availability.
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For a calmer investment journey

The investment journey can be as important as the destination for many clients. The built-in smoothing mechanism helps to deliver a calmer investment journey well suited to your risk-sensitive clients.
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As a simple, low-cost investment

Our Bond is a straightforward, single premium investment option, designed to deliver steady growth over the medium to long-term.
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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 inheritance tax 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.
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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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Secure greater tax efficiency for your clients with a trust

The LV= Smoothed Bond can easily be placed into a trust, like the LV= Loan Trust, for tax efficient investing and estate planning. We offer Fixed and Flexible Trusts, with Loan Trust options.
To learn more speak to your local Wealth Account Manager
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Getting more for your clients

We want your clients to live confidently. That’s why we give our members more with their LV= Smoothed Bond.

As an investor in our Smoothed Bond, your client automatically becomes a member of LV=. Being a member will give them access to exclusive member benefits and additional support services.

  • 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.
  • Potential investment boost with our mutual bonus after the first year. When we do well, we are able to reward and recognise eligible members for their support in the development and growth of our business through a mutual bonus*. More on member benefits
  • Member benefits. We offer benefits to certain with-profits members – your LV= Smoothed Bond clients are eligible.
  • *The decision to give a mutual bonus is at the sole discretion of our board of directors. We can’t guarantee that we’ll be able to announce a mutual bonus every year, as it will depend on our future trading profits, financial strength and our decisions on how we wish to reward our members. We can take mutual bonus away in exceptional circumstances, for example if it were required to protect our financial strength. More on mutual bonus
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Let's talk

To learn more about the LV= Smoothed Bond, speak to your local Wealth Account Manager.

You can also call 0800 032 8298 or email our adviser support team to book an introductory meeting. Please quote your FCA number and postcode.

Lines are open 9am-5pm Monday-Friday. For TextDirect: first dial 18001. We may record or monitor calls for training and audit purposes.