News

UK: Norwich Union backs with-profits with five-year money-back guarantee

09 February, 2004

Norwich Union is introducing a five-year money-back guarantee on all new With-Profit Fund investments in its Portfolio investment bond.

The new feature will guarantee to return the policyholder’s original investment on the policy’s fifth anniversary regardless of investment conditions. This guarantee applies to Portfolio With-Profit Fund investments taken out from 9 February until 31 December 2004, or earlier if fully subscribed prior to that. It will also be available for offshore with-profits investments in the Norwich Union International Core Fund Bond and Norwich Union International With-Profit Bond.

In addition to the five-year guarantee of return of original investment, an extra 1.5% allocation rate will continue to be offered on all new investments in Portfolio bond.

Neil Davies, head of investment product development at Norwich Union, said: "We are further improving our with-profits bond offering with a guarantee to return investors’ money after five years regardless of what happens to the stock market. We understand that capital security is a concern for some investors and we believe this new guarantee will provide them the reassurance they need."

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Press office contacts:
James Evans 08703 66 68 78 Out of hours 07790 487105
Lorna Wiltshire 08703 66 68 78 Out of hours 07788 471849
Louise Goffee 08703 66 68 70 Out of hours 07810 057362
David Gwyer 08703 66 68 71 Out of hours 07800 699508

Notes to Editors

• Norwich Union is the UK’s largest insurer. It is a leading provider of life, pensions and investment products and one of the leading IFA providers. IFAs provide around 70% of the company’s long-term savings business.
• Norwich Union has strategic alliances with building societies and other leading UK brand names including Tesco Personal Finance and The Royal Bank of Scotland Group.
• Norwich Union’s news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media.

About the Portfolio money-back guarantee

• The five-year guarantee will apply to investments held continuously in the With-Profit Fund for five years that are fully withdrawn on, or within two weeks after, the 5^th anniversary. A penalty will be incurred if money is withdrawn from the fund before the 5^th anniversary.
• The five-year money-back guarantee offer may be withdrawn before the end of 2004 if fully subscribed before then.
• The guarantee does not apply to the With-Profit Income Fund, or to switches into the fund.

About the Norwich Union Portfolio investment bond

• The Norwich Union Portfolio bond offers a flexible way to invest for growth or income. Its minimum investment is Ł5,000 and investors can choose to put their money in a selection of funds including with-profits, equity, distribution, property, bonds and cash, which are run by Norwich Union and other fund managers.
• Offers valuable guarantees - for investments into the With-Profit Fund, there is also a 10th anniversary money-back guarantee.
• Is simpler and more flexible - offering a wide choice of internal and external funds and a choice of two charging structures within a single bond
• Has clear and easy to understand charges - explicit charging provides investors with a clear picture of the charges applicable to their investment
• Funds on offer – offers investors the choice of income and growth funds. Investors can choose from a range of 31 internal funds as well as more than 50 external funds managed by 12 industry-renowned fund managers