Article date: 15 November 2002
Norwich Union is launching a second edition of its ProsperIncome Bond paying a fixed income of 6.25% pa net for the four-yearterm. The new bond will be available from Monday 18 November.
Prosper Income is a single premium investment bond –minimum investment £5,000 – which gives the security of aguaranteed income.
Main product features:
- Guaranteed income of 6.25 % p.a. net
- Fixed four year term
- Minimum investment £5,000 – no maximum
- Performance linked to the DJ Euro Stoxx 50 Index
- Capital is protected if the DJ Euro Stoxx 50 Index does notfall by more than 30 % of the level at the start of the term, atany time during the last three years of the four year investmentperiod, and the Index is not lower than the level at which it waswhen the term started.
If both the above events occur, the original capital will bereduced. Any reduction to the original investment will be a truereflection of the fall in the index – the reduction incapital will match the fall in the Index.
The closing date for investment is 27 December 2002 with thefour-year term starting on 6 January 2003. Early investors willbenefit from an extra bonus of 0.35% if they invest before 9December 2002. This reduces to 0.15% thereafter.
Neil Davies, Head of Investments at Norwich Union, said: "Thisnew bond offers a good way of securing a high level of income at atime when traditional deposit income rates are very low.
“As well as a very competitive level of income we havealso built in a degree of capital protection which gives customersa good level of reassurance. Any fall in the index in the firstyear, beyond the protection, will be ignored. After this point, anyfalls in the index outside of the capital protection, will onlyresult in a matched reduction in capital.
“We believe that matching the fall in the market tocapital is an important point which customers need to understand,ensuring there is no gearing effect on capital reductions which hasbeen a prevalent feature on many other providers bonds launched inthe market.”
Further information on Prosper is available by calling NorwichUnion on 0845 9444800 or visit the website atwww.norwichunion.com
Press office contacts:
James Evans, Norwich Union 08703 66 68 78
Out of hours 07790 487105
Louise Goffee, Norwich Union 08703 66 68 70
Out of hours 07810 057362
Ian Beggs, Norwich Union 08703 66 68 71
Out of hours 07790 487533
Notes to editors
- Norwich Union is the UK’s largest insurer. It is theUK’s largest provider of life, pensions and investmentproducts and one of the leading IFA providers. IFAs provide around75% of the company’s long-term savings business.
- Norwich Union has strategic alliances with building societiesand other leading UK brand names including Tesco Personal Financeand The Royal Bank of Scotland Group.
- Norwich Union’s news releases are available on the Avivaplc website at www.aviva.com
- A selection of images are available from the Norwich UnionNewscast site at www.newscast.co.uk
For all life & pensions media enquiries 08703 66 68 78
For all other media enquiries 08703 66 68 68