LV= is celebrating two decades since the launch of its first smoothed investment product, the All in One Bond (AIOB) in 2005.
The investment, protection and retirement specialist said its smoothing mechanism had consistently supported investors through market volatility including the 2008 financial crisis, Covid-19 pandemic and recent global economic volatility.
The product is designed for long-term growth with reduced exposure to short-term market fluctuations. The product applies a 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.
LV= said 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.
When invested in Smoothed Managed Funds, investors also receive access to mutual benefits, including eligibility for a bonus award, rewarding members for their support of the development and growth of the business. LV= aid that since 2011 it had distributed over £400 million in member bonuses.
Research from the mutual’s latest Wealth and Wellbeing research showed that 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.
LV said 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.”
