LV= diversified income, balanced managed and stockmarket have all been launched into the retail market with an Isa wrapper in a bid to target investors seeking to move into funds following the fall in interest rates in the UK to 1 per cent.
Returns paid on cash Isa’s are now at the lowest point since records began, standing at 1.94 per cent on average, down from 5.23 per cent 12 months ago.
Those buying prior to the close of the Isa season on April 5, 2009 on the LV= website will have their initial charge reduced to 2 per cent. Minimum investment is set £1,000 while monthly payments are set at £100.
LVAM head of multi manager Tom Caddick says: “Knowing that this tax year’s Isa allowance will be gone for good on April 6 puts pressure on investors. While it is impossible to say if markets have passed the rock bottom point yet, I am confident that we will look back at 2009 as a time of great opportunity for those willing to take a long-term view.”