LV= has announced it is discounting fees on its smoothed pension funds, with annual service charges of 0.15% for its Flexible Transition Account to be waived in the first year for new customers.

The mutual insurer revealed the reduction will apply to all applications received between 22 January and 5 April 2020.

LV= said that for customers to qualify, the pension plan must be 100% invested in the Flexible Guarantee Funds, and cases should be completed by 31 May.

LV= Smoothed Managed Funds are managed by the global asset manager, Columbia Threadneedle Investments, in collaboration with the Investment Management Group at LV=. They incorporate a smoothing mechanism that works by taking the average daily unit price over the previous 26 weeks to help reduce short-term market volatility.

LV= managing director of savings and retirement, Clive Bolton, said: “This new offer serves to reward savers who choose our Smoothed Managed Funds by waiving pension wrapper fees during their first year of investment.

“As a mutual, this is a great example of how we can give something back to our members. LV= can also reward its eligible members with a mutual bonus, which provides a potential investment boost. Our goal is to incentivise more people to save strategically for their retirement.”

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