LV= Junior ISA Portfolio

Are you looking for an investment option that aims to grow your fund while providing a calmer experience?

Our Smoothed Managed Funds have a built-in mechanism designed to provide you with a calmer investment journey by averaging out the traditional peaks and troughs of stock market investing. 

We call this smoothing. 

Here’s how it works. 

On day one, your money is invested into your chosen fund(s) at the underlying daily fund price.

On day two the underlying daily fund prices for day one and day two are added together and divided by two.

On day three the underlying daily fund prices for all three days are added together and divided by three, and so on. 

This process continues for 26 weeks - approximately six months. 

After this, your investment value becomes a rolling average of the underlying daily fund prices over the previous six months. 

This means if markets are growing, you will see smoothed fund prices increasing at a slower rate than the prices of unsmoothed funds. 

But, if markets are falling or fluctuating, you won’t see the same sudden drops or changes to your smoothed fund value as you would in an unsmoothed fund. 

Our robust smoothing mechanism has allowed our members to experience calmer investment journeys since it was first launched and it has remained stable throughout difficult market conditions, including the 2008 financial crisis and the 2020 COVID-19 pandemic.

You may find this valuable if you’re nearing retirement, you’re already taking a retirement income, or simply want to reduce the impact of stock market volatility on your investments. 

As a mutual we’re here for our members, and our smoothed funds are designed to reduce the stress that can come with investing while supporting you to reach your financial goals. 

Please remember our smoothed funds are a stock market related investment and while we aim to grow your investment, you could get back less than you paid in.

Speak to your financial adviser to discuss how LV’s Smoothed Managed Funds could be right for you.
 
Although it’s unlikely, we may need to suspend the smoothing mechanism at some points, to protect our members and our business. We might need to do this if the underlying daily fund price becomes less than 80% of the smoothed price, or in other exceptional circumstances. 

If we did have to do this, the smoothed fund(s) you’re invested in would be valued using the underlying daily fund price or, if needed, on a daily gradual averaged price until smoothing is reintroduced.