Norwich Union is changing the pricing structure of its retail fund range to focus on offering both a CAT priced range and a non-CAT priced range of ISA funds. The changes will take effect from 28 February 2003.
Norwich Union is changing the pricing structure of its retail fund range to focus on offering both a CAT priced range and a non-CAT priced range of ISA funds. The changes will take effect from 28 February 2003.
The CAT priced range of funds will comprise of:
- Blue Chip Tracker
- UK Index Tracker
- International Index Tracker*
The above funds will have an annual management charge of 0.90 per cent with no initial charge.
The non-CAT priced range of funds will comprise of:
| Fund | Initial charge % | Annual charge % |
| Higher Income Plus | 4 | 1.25 |
| Corporate Bond | 4 | 1.00 |
| Portfolio | 5 | 1.50 |
| European Equity | 5 | 1.50 |
| UK Equity | 5 | 1.50 |
| UK Equity Income | 5 | 1.50 |
| UK Ethical | 5 | 1.50 |
| UK Growth | 5 | 1.50 |
The new pricing structure of the funds brings Norwich Union into line with industry standard pricing of actively managed funds.
Cuimin Macmahon, Head of Collective Investments for Norwich Union, said: “Norwich Union continues to offer both CAT and non-CAT priced retail funds thereby ensuring clients have the choice of both active or passive management of their funds.
“The current price cap on CAT funds makes it uneconomic for us to continue to offer actively managed ISAs within a 1% charge. We are therefore changing the pricing structure of actively managed funds to better reflect the true cost of selling them and managing them.
“The change in charging structure brings our fund charging more into line with other investment houses in the industry.”
Press office contacts:
| Out of hours | ||
| James Evans, Norwich Union | 08703 66 68 78 | 07790 487105 |
| Louise Goffee, Norwich Union | 08703 66 68 70 | 07810 057362 |
| Ian Beggs, Norwich Union | 08703 66 68 71 | 07790 487533 |
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.
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.
*The International Index Tracker is not a CAT standard fund – however the pricing structure remains within CAT standards.
The current charging structure of the funds which are moving to non-CAT priced funds from 28 February 2003 is:
| Fund | Annual management charge |
| Higher Income Plus | 1 % |
| Corporate Bond | 0.8 % |
| Portfolio | 1 % |
| European Equity | 1 % |
| UK Equity | 1 % |
| UK Equity Income | 1 % |
| UK Ethical | 1 % |
| UK Growth | 1 % |
There is currently no initial charge on the above funds.
Customers who have invested in the above funds prior to the new charging structure becoming effective in February 2003, will continue to attract the same level of charges. Regular savers will be able to continue to contribute on a regular basis to their investment on the current charging structure.
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