LV= Smoothed Bond:

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The application

Important information about quote and apply for the Flexible Guarantee Bond

The quote and apply tool cannot be used to produce new FGB illustrations from 30 May 2022. All pipeline applications must be submitted by Friday 24 June 2022 with funds received and ready to complete by Friday 22 July 2022.

LV= Smoothed Bond – main features

We’re here to help protect your clients’ funds and with our Smoothed Managed Funds Bond, you can make the most of its unique features to do just that. It’s an onshore investment option with a range of fund options managed to our mandate by Columbia Threadneedle Investments.

Designed to provide long-term steady to moderate growth, with very low to medium level risk investment, the main features of our Smoothed Bond include:

  • 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 multiple agencies.
  • Optional capital guarantee available – lock-in fund value for a fixed 10-year term, helping reduce downside risk. 10-year guarantee periods only available with Smoothed Managed Cautious 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 layers of protection, 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.

Getting more from 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. 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.
  • 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*. At the moment, we do this by increasing the value of eligible with-profits policies by a percentage. We’ve awarded £265 million to eligible members’ policies since we introduced the mutual bonus in 2011.
  • More on member benefits
  • Exclusive 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

6 ways to make the most of the LV= Smoothed 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.
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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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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.

LV= Smoothed Pension

Grow your clients’ pension fund with a reliable investor experience with low volatility.

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 unique funds via other providers’ SIPPs and SSASs.
Contact Phone

Let's talk

0800 085 0250

9am - 5.30pm Mon-Fri

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