Norwich Union is launching a special offer for new customers who invest in its Portfolio investment bond.
Norwich Union is launching a special offer for new customers who invest in its Portfolio investment bond.
It is increasing allocation rates by 1% across all ages, premium sizes and funds. Allocation rates determine the percentage of a single premium invested at the outset of the investment.
The new allocation rate for an investor aged 74 and under with a Ł50,000 premium is 103%. This means that a customer matching this profile with a Ł50,000 premium would have Ł51,500 invested in his policy. (Example assumes step down charging structure. See note to editors).
The special offer will be introduced on 31 August 2004 and may be withdrawn or varied at Norwich Union's discretion at any time. Exit penalties in the first three years will also be increased by 1% during the period it applies.
Neil Davies, head of investment product development at Norwich Union, said: "This is good news for our customers. The special offer means they will see more of their money invested from day one. We have put a lot of work into developing Portfolio and it is paying off. Since its launch, sales have done very well and it is popular with IFAs and investors.
"Portfolio is popular because it offers investors a choice of 31 internal funds and more than 50 external funds managed by 12 fund managers. A number of these funds have been developed with cautious investors in mind. When Portfolio was launched it included a new explicit charge structure, which gave investors a clear picture of the charges that apply to their investment."
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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 Portfolio
Portfolio 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 cash, bond, property, distribution, equity and with-profit funds, which are run by Norwich Union and other fund managers.
Step down option: The Step down charging structure is one of two charging structures available with Portfolio and charges reduce after five years. The alternative is the Level option where charges remain constant throughout the policy’s life. The management charge is 1% to 1.95% depending on fund selected. Administration charge: Investments below Ł10,000: 1%pa for first five years. Investments of at least Ł10,000, 0.5%pa for first five years.
Portfolio, Norwich Union’s investment bond:
- Offers valuable guarantees - for investments into the With-Profit Fund, there is a 5th and 10th anniversary money-back guarantee. The 5-year money-back guarantee is a special offer that ends on 31 December or earlier if fully subscribed. On the Guaranteed Fund, there is a money-back guarantee on the 5th anniversary
- Is flexible - offering a wide choice of internal and external funds and a choice of two charging structures within a single bond
- Funds on offer – offers investors the choice of income and growth funds. Investors can choose from a range of 31 internal funds and 51 funds managed by 12 industry-renowned fund managers