LV= marks 20 years of smoothed investment innovation

Investment, protection and retirement specialist LV= is proud to celebrate two decades since the launch of its first smoothed investment product, the All in One Bond (AIOB). Introduced in 2005, LV’s successful smoothing mechanism has consistently supported investors through market volatility including the 2008 financial crisis, Covid-19 pandemic and recent global economic volatility. 

Designed for those seeking long-term growth with reduced exposure to short-term market fluctuations, LV’s current Smoothed Managed Fund range offers an investment experience that cushions the impact of volatile market conditions. The product applies a unique smoothing process that takes the average of a fund’s daily price over the past 26 weeks, cushioning the impact of any short term investment volatility. 

Over time, the product suite has expanded across pensions, bonds and ISA wrappers and the fund range is now available on LV’s own platform, LV= Platform Services and through a SIPP, via the LV= trustee investment plan. What’s more, in 2022, two additional funds were introduced to cater to an even wider selection of risk appetites. 

When invested in Smoothed Managed Funds, investors also receive access to benefits, including eligibility for a mutual bonus award, rewarding members for their support of the development and growth of the business. Since 2011, LV= has distributed over £400 million in member bonuses.

LV’s investment management has also evolved. In April 2024, it appointed BlackRock as its primary asset manager. 

Research from LV’s latest Wealth and Wellbeing research revealed one in ten consumers are worried about the impact of stock market volatility, up from 7% in September 2024. Among investors, this concern rises, with nearly two in five (17%) expressing concern. Risk managed solutions, like smoothed funds, can offer a more stable investment journey for those seeking reassurance in uncertain times, and with the ability for advisers to blend Smoothed Managed Funds with annuities through the Fixed Term Investment and other multi-asset funds, the range offers true flexibility through all client life stages.

Currently, customers investing 100% in the Smoothed Pension funds within the LV= SIPP benefit from a reduced wrapper charge that’s dropped from 0.20% to 0.15%. A minimum wrapper fee applies of £175.

Sarah Hills, Wealth Proposition Director at LV=, said: 

“We’re proud to mark 20 years of LV= Smoothed Managed Funds, a product that has stood the test of time and consistently delivered stability and confidence for our members and customers through challenging markets. 

“Our smoothing mechanism continues to deliver meaningful results for customers seeking greater stability in their investment journeys. Smoothed funds and other lower-risk solutions can play a valuable role in wealth preservation and support long-term financial planning across generations

“We remain committed to supporting advisers and investors in building financially resilient futures and look forward to the next 20 years of LV= Smoothed Managed Funds.”

Simon Roberts, Independent Financial Adviser at Greaves Wealth Management said: 

“Over the last 12 months, I’ve had the pleasure of recommending LV= Smoothed Managed Funds to my clients, and the experience has been exceptional. 

The consistent performance and stability they offer have been invaluable to my clients, especially in uncertain market conditions. What stands out is the balance they strike between risk management and growth potential, which has given my clients peace of mind and helped them stay on track toward their financial goals. 

The long-term track record of the Smoothed Managed Funds speaks for itself, and it’s a product I feel confident recommending to anyone looking for reliable, professional investment management.”

To find out more about LV’s Smoothed Investments, visit https://www.lvadviser.com/smoothed-investments.