LV= appoints BlackRock as its new primary asset manager subject to regulatory process.
The partnership will make BlackRock’s investment expertise available to LV= members, clients, and financial advisors, building on LV’s Smoothed Managed Fund (SMF) line.
The move is part of a larger plan to improve LV’s capacity for investment management and improve investors’ chances for future performance.
Columbia Threadneedle Investments is now in charge of managing the LV funds that will transfer to BlackRock.
The LV= Investment Oversight Group will carefully phase the transfer over the course of the following 12 months in collaboration with knowledgeable outside investment consultants.
LV= remains responsible for all strategic asset allocations and investment decisions.
LV= chief executive David Hynam says: “I am delighted to announce LV’s intent to partner with BlackRock as our new primary asset manager.
“BlackRock is an innovative asset manager whose substantive scale and market expertise will support our overall asset allocation. We believe this is great news for our members and existing customers. Our partnership will help us continue to broaden the appeal and reach of the LV= SMF range for advisers and their clients.
“Our unique smoothing mechanism aims to reduce the impact of short-term market volatility, which is why Smoothed Managed Funds have gained popularity and now form the majority of LV’s With-Profits funds under management. The current range of five funds is designed for investors with a low to medium risk profile.
“We are excited to closely partner with BlackRock and start leveraging their market insights, investment ideas and asset capabilities to benefit our members. Within our investment strategy, we expect to see the impact of their investment expertise within the first three months. More information will follow as we continue through the phases of our transition.
“The decision to appoint BlackRock is one of several initiatives we have introduced to grow the market for SMF. We are also modernising access to the funds through new customer and adviser portals and launching a ‘Platform Services’ option, enabling financial advisers to access SMF alongside a large range of funds on platform technology.
“I would like to thank Columbia Threadneedle Investments for their work in managing our funds. During their time as asset manager, the SMF range has demonstrated strong long-term performance and we are grateful for the support and good service they have provided.”
BlackRock head of UK Sarah Melvin says: “We’re delighted to be working with LV=, one of the UK’s leading mutuals, to support them in providing long-term investment solutions for their members and customers, with a shared purpose of helping people achieve financial freedom in their retirement.
“The combination of BlackRock’s investment expertise and risk management technology alongside LV=’s significant experience aims to generate optimal outcomes for their members and we’re really looking forward to working together.”