LV= makes smoothed funds accessible to SIPP and SSAS investors

LV= has launched a trustee investment plan to make smoothed funds more accessible to SIPP and SSAS investors. The LV= Trustee Investment Plan (TIP), a single-contribution investment policy for trustees of UK registered pension schemes, will enable pension plan holders to invest in LV’s Smoothed Managed funds using SIPPs of SSAS. The funds are designed to help deliver low-volatility returns for risk-sensitive clients. They are managed by Columbia Threadneedle Investments. The funds were previously only available through a LV= pension. LV= also made enhancements to the smoothing mechanism on the new TIP version of its funds to reduce the impact of short-term market volatility from the point of investment. The smoothing mechanism works by averaging the daily underlying price of investments over the previous six months. For TIPs, the smoothing mechanism will now start from the second day of investment and gradually build up to an average of the previous six months of underlying fund prices. Previously, the smoothing mechanism began after the investment had been held for six months. SIPP and SSAS savers can make regular monthly, quarterly, biannual or annual withdrawals with no minimum withdrawal amount set amount. The minimum initial investment for opening an LV= TIP is £20,000 and the maximum investment permitted is £1,000,000. Clive Bolton, managing director of savings and retirement at LV=, said: “The steep falls and fluctuations in investments markets will have unnerved many investors this year. LV=’s Smoothed Managed Funds can be an invaluable component in retirement planning, as our unique smoothing mechanism has withstood market volatility for over ten years. Our new Trustee Investment Plan is a significant development because it means the funds can be held as an asset of any SIPP or SSAS. “LV= research found that twice as many affluent savers are worried about the volatility of the stock market compared to the general public. We’re therefore delighted to be able to make our Smoothed Managed Fund more widely accessible for advisers to build in some volatility protection to a customer’s portfolio. The introduction of gradual smoothing on entry also means that new customers will benefit as they gradually build up their smoothed position right from the start of their investment.”

LV= makes smoothed funds accessible to SIPP and SSAS investors

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