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LV= offers Isa access to smoothed funds

Clive Bolton, Aviva
Clive Bolton

LV= has launched a new stocks and shares Isa, adding to its existing range of smoothed managed funds for advised clients.

It says the funds, which have previously only been available through bond and pension products, reduce the impact of short-term market fluctuations for investors.

Available only to advised clients, the new LV= Isa provides access for Isa investors to a choice of three global multi-asset funds – Isa Cautious, Isa Balanced and Isa Growth.

They are managed by Columbia Threadneedle Investments working in collaboration with the investment management group at LV=.

These are are risk-rated as three, four and five respectively by market analysts Defaqto and Distribution Technology.

LV= says the new Isa has no minimum fixed term although it is designed to provide steady growth for a period of at least five years.

The minimum initial payment is £10,000, the maximum investment subscription is £1m, and Isa holders will have access to their investment at any time subject to a minimum balance of £500.

LV= life and pensions managing director Clive Bolton says: “Advisers and their clients have told us that they want to be able to access the range of LV= Smoothed Managed funds through an Isa.

“We believe that the new LV= Isa not only meets that demand but, in conjunction with our bond and pension products, completes the ways investors can benefit from LV=’s unique smoothing mechanism.

“Our new Isa is likely to suit clients looking for low volatility investments, for example, someone looking to consolidate their existing Isa holdings into a lower risk environment as they near or enter retirement. Or more generally we would expect the LV= Isa to appeal to a cautious investor looking for potential returns in excess of cash deposit rates.”

Bolton explains this is the group most impacted by volatility and potential share price drops.

They are clients who have between £100,000 to £500,000 in savings and who will spend all their money when they are retired.

He adds: “Their needs are very different to some of the other segments where if you are client and have £30,000, you take it as cash. If you have £2m in wealth, that has tax planning implications and is about passing onto future generations.

“The requirements of the mass affluent market is complex and they need advice. Increasingly the FCA are talking about essential income and this is an area where the industry needs to focus more.”


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