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 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
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.
6 ways to make the most of the LV= Smoothed Bond
As a simple, low-cost investment
Our Bond is a straightforward investment option, designed to deliver steady growth over the medium to long-term.
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.
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.As a simple, low-cost investment
Our Bond is a straightforward investment option, designed to deliver steady growth over the medium to long-term.
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.
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.
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.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.
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
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 interests first. As a mutual, we’re owned by our members. We put the interests of your clients first, rather than those of external shareholders. We offer benefits to certain with-profits members – your LV= Smoothed Bond clients are eligible.
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*.
*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.
Browse more investment solutions
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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.
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