In a difficult global investment environment, investors have become all too aware of the risks the share market may hold as a savings and financial growth tool.
In a difficult global investment environment, investors have become all too aware of the risks the share market may hold as a savings and financial growth tool.
"Investors are continually on the look out for an investment that provides the best return possible for the lowest risk,” said Allan Griffiths, Managing Director Norwich Union Life.
Those looking to invest will quickly discover that the highest returns are generally provided by investments with high volatility.
For long-term investors, a robust diversified portfolio consists of at least 50 per cent of growth assets, such as shares and property. However these investments can have short to mid term volatility and negative returns may occur, which is daunting for many people.
“Investors realise the benefits of investing in growth assets with exposure to potentially higher returns, but they are also looking for the security of having their invested capital protected. It’s all about finding a way to increase the return of funds without increasing the risk,” said Allan.
Norwich Union Life is one of the only financial organisations to offer investors the chance to protect their original investment.
By adding the Capital Protection feature to their Norwich Union investment product, investors are able to protect their original investment after a deferral period in case there is a downturn in financial markets. Capital Protection ensures that the funds available at the end of the deferral period are the same as the amount of funds initially invested (less any withdrawals).
Investors can benefit from this product enhancement by utilising two different strategies. Firstly, they can simply set their protection level so that they are guaranteed a certain amount at the end of the deferral period.
Or, investors review their protection every six months. If the market rises, investors can lock in at the higher investment balance and if the market drops they do nothing – and their funds are protected.
“This is a state-of-the-art product feature specifically designed to give investors peace of mind when they are investing. By taking out Capital Protection, investors get to watch their funds increase in ‘good times’ with the knowledge that they are protected in the event of ‘bad times’,” said Allan.
Allan Griffiths is available for interview
For further information, please contact:
Bernadette Collins
Public Affairs Manager
Ph: (03) 9829 8818
Mob: 0407 385 645
Note to editors:
- Norwich Union Australia is a group of three specialist financial services companies; Navigator, Norwich Union Life and Portfolio Partners. Through these companies we provide products and services in the areas of wealth creation, wealth management and wealth protection for more than 300,000 customers throughout Australia.
- Globally, Norwich Union Australia is part of Aviva plc, the world’s seventh largest insurance group, the largest insurer in the UK and one of the top five life companies in Europe. Aviva was formed in May 2000 through the global merger of CGU plc and Norwich Union plc.
- Aviva’s principal business activities are long-term savings, funds management and general insurance. It has a market capitalisation of approximately A$32.19 billion at 30/09/02, worldwide premium and investment sales of more than A$80 billion from ongoing business and more than A$572 billion in assets under management. The group has 64,000 employees and more than 25 million customers.
- Norwich Union Australia has a sister company, CGU Insurance Ltd, a top 5 general insurance business, which operates independently in Australia.
- This document does not contain all the terms and conditions attaching to product benefits and options. For a full list of terms and conditions please refer to the Offer Document. A policy for insurance cover or an application for an issue of an interest as described in this document can only be effected after completion of the application form contained in a current Offer Document for the product.
The information in this document reflects Norwich Union's understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. While it is believed the information is accurate and reliable, this is not guaranteed in any way. The information is not, nor is it intended, to be comprehensive or a substitute for professional advice on specific circumstances.
The securities advice or information given in this document is of a general nature and has not taken into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision on the basis of the advice above, a prospective investor needs to consider, with or without the assistance of a professional adviser whether the advice is appropriate in the light of their particular investment needs, objectives and financial circumstances.