Norwich Union is to offer a new series of its Guaranteed Fund, which will be available from 9 August 2004.
Norwich Union is to offer a new series of its Guaranteed Fund, which will be available from 9 August 2004.
The Guaranteed Fund is designed to provide capital growth through investing in a wide range of assets, and also guarantees that the value on the 5th anniversary will be no less than the original payment into the fund.
Each series runs for five years and invests in UK and international equities, bonds, property and cash. At launch between 45% and 50% of the fund will be invested in equities and property but this figure could rise or fall depending on market conditions.
The fund is actively managed and aimed at cautious investors. It is available through Norwich Union’s Portfolio investment bond and the minimum investment is Ł5,000.
Neil Davies, head of investment product development at Norwich Union, said: "The Guaranteed Fund has been popular with IFAs because it offers exposure to a wide spread of assets, which gives the prospect of growth with a reasonable level of risk. Investors like it because it also guarantees their original capital on the fifth anniversary.
"The fund is actively managed and that means the fund manager can move into equities when stock markets are improving, and out of equities if they are falling. Launching a new discrete version of the fund allows us to manage the assets more effectively to achieve better growth potential for new investors."
The guarantee applies only on the fifth anniversary. If money is taken out before or after that date, the customer may not get back the amount invested.
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Notes to Editors
- Norwich Union is the UK's largest insurer. It is the UK's largest provider of life, pensions and investment products and one of the leading IFA providers. IFAs provide around 75% of the company's long-term savings business in the UK.
- 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 Norwich Union Guaranteed Fund
- The Guaranteed Fund is designed to provide capital growth while providing a guarantee that the value on the 5th anniversary will be no less than the original payment into the fund. Any withdrawals, switches and charges from the fund will reduce the guaranteed amount in proportion to the number of units cancelled. The asset mix of the fund will vary to manage the cost of the guarantees. The Guaranteed Fund is available only as a five-year investment.
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.
- Is simple and 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