Article date: 5 July 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 growththrough investing in a wide range of assets, and also guaranteesthat the value on the 5th anniversary will be no less than theoriginal payment into the fund.
Each series runs for five years and invests in UK andinternational equities, bonds, property and cash. At launch between45% and 50% of the fund will be invested in equities and propertybut this figure could rise or fall depending on marketconditions.
The fund is actively managed and aimed at cautious investors. Itis available through Norwich Union’s Portfolio investmentbond and the minimum investment is £5,000.
Neil Davies, head of investment product development at NorwichUnion, said: "The Guaranteed Fund has been popular with IFAsbecause it offers exposure to a wide spread of assets, which givesthe prospect of growth with a reasonable level of risk. Investorslike it because it also guarantees their original capital on thefifth anniversary.
"The fund is actively managed and that means the fund managercan move into equities when stock markets are improving, and out ofequities if they are falling. Launching a new discrete version ofthe fund allows us to manage the assets more effectively to achievebetter growth potential for new investors."
The guarantee applies only on the fifth anniversary. If money istaken out before or after that date, the customer may not get backthe amount invested.
Press office contacts:
David Gwyer 01904 452828 Outof hours 07800 699508
James Evans 01904 452791 Out of hours 07790 487105
Rob Pell 01904 452659 Out of hours 07968 934091
Louise Goffee 01904 452617 Out of hours 07810 057262
Notes to Editors
- Norwich Union is the UK's largest insurer. It is the UK'slargest provider of life, pensions and investment products and oneof the leading IFA providers. IFAs provide around 75% of thecompany's long-term savings business in the UK.
- 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 and a selection of imagesare 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 whileproviding a guarantee that the value on the 5th anniversary willbe no less than the original payment into the fund. Anywithdrawals, switches and charges from the fund will reduce theguaranteed amount in proportion to the number of unitscancelled. The asset mix of the fund will vary to manage thecost of the guarantees. The Guaranteed Fund is available only asa five-year investment.
About the Norwich Union Portfolio investment bond
- The Norwich Union Portfolio bond offers a flexible way to investfor growth or income. Its minimum investment is £5,000 andinvestors can choose to put their money in a selection of fundsincluding with-profits, equity, distribution, property, bondsand cash, which are run by Norwich Union and other fundmanagers.
- Is simple and flexible - offering a wide choice of internaland external funds and a choice of two charging structures withina single bond
- Has clear and easy to understand charges - explicit chargingprovides investors with a clear picture of the charges applicableto their investment
- Funds on offer – offers investors the choice of incomeand growth funds. Investors can choose from a range of 31 internalfunds as well as more than 50 external funds managed by 12industry-renowned fund managers