Norwich Union’s Active Protector Fund has celebrated its second anniversary, whilst its features are helping investors to feel secure in the face of current market uncertainty.
Norwich Union’s Active Protector Fund has celebrated its second anniversary, whilst its features are helping investors to feel secure in the face of current market uncertainty.
On the 19 February 2007, the fund’s share price reached a high of 124 pence. This means that anyone who invested on day one of its launch will already have around 99% of their initial investment protected despite the market’s recent turmoil. This is a result of Active Protector’s in-built safeguard, which prevents investments from falling below 80% of the highest share price ever received.
The announcement comes after Zurich - the market leader in this field - closed its Threadneedle Protected Profits Fund to new customers, making Active Protector an attractive alternative for customers.
Norwich Union has also taken steps to make the fund even more appealing to potential investors and financial advisers by producing a range of revised supporting literature to improve adviser and customer understanding.
Neil Davies, director of marketing investments at Norwich Union, said: “Since its introduction the Active Protector Fund has delivered impressive results, both in terms of growth and protection. The fund is doing exactly what we said it would and this is great news given recent market volatility - we are delighted its first customers will now see nearly all of their investment protected in only two years.
“This fund is ideal for cautious investors who would like the potential to benefit from the stock market, while at the same time limiting their exposure to the obvious risks.”
Past performance is not a guide to the future – the value of a fund and any income from it can go down as well as up and the investor may not get back what they put in.
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Press office contacts:
James Paterson 01904 452525 Out of hours 07800 692798
Louise Soulsby 01904 452901 Out of hours 07800 699526
Notes to editors:
About the Norwich Union Active Protector Fund
The Norwich Active Protector Fund was launched 1 March 2005.
The fund provides an opportunity for growth through linking performance to a mix of equities and fixed interests. Performance is linked to a diversified investment portfolio, which can spread the investment risk across a range of assets.
A choice of investment routes is available: ISA, direct investments, ISA/PEP transfer.
About the charges on the fund
The fund is subject to a 5% initial charge, with an annual management charge of 1.15%, reduced by 25% if more than half the fund is linked to the protected part (see charging example below). In addition, 0.75% is used to pay the cost of protection to UBS.
| Active Protector Fund | |||
| Active Part | 100% | 75% | 49% |
| Protected Part | 0% | 25% | 51% |
| Total Annual Fund charge | 1.15% | 1.15% | 0.90% |
| Protection Charge | 0.75% | 0.5625% (75% x 0.75%) | 0.3675% (49% x 0.75%) |
| Overall Charge | 1.90% | 1.7125% | 1.2675% |
About Norwich Union
Norwich Union is the UK’s largest insurer. It is a leading provider of life, pensions and investment products and one of the largest financial adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.
Norwich Union is the UK’s largest general insurer with a market share of around 14%, with a focus on insurance for individuals and small businesses.
Norwich Union’s news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media