Norwich Union Guaranteed Growth Plan promises a minimum return of 20%

Article date: 12 July 2004

Norwich Union is to launch a Guaranteed Growth Plan thatguarantees a minimum return of 20% regardless of what happens tothe FTSE 100.

The Guaranteed Growth Plan has been designed to provide a returnafter six years of either 20% of the investor’s originalpremium, or 65% of the growth from the FTSE 100 (averaged over thelast six months of the plan), whichever is higher. (See notes toeditors).

The plan is a six-year single premium product which will beavailable for eight weeks from 26 July 2004. It can be held as adirect investment or held in an Isa, or as a Pep transfer, and theminimum investment is £3,000.

It will be distributed by IFAs and through building societies byNorwich Union’s partnership sales network.

Neil Davies, head of investment product development at NorwichUnion, said: "We expect that the Guaranteed Growth Plan will bepopular with customers because it offers a guaranteed minimumreturn if the plan is held for its full term.

"It will appeal to investors who like the idea of a minimumreturn even if the stock market falls, and the possibility of aneven better return if the stock market does well."

Full details of the guarantee and how it applies are detailed inthe key features document which is available from the IFA orbuilding society adviser. The guarantee does not apply if the planis cashed in early. If the plan is cashed in early, the customermay get back less than the amount they invested.

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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 Soulsby 01904 452617 Out of hours 07810 057262

Notes to editors:
About the NorwichUnion’s Guaranteed Growth Plan

The Norwich Union Guaranteed Growth Plan will be a six-yearsingle premium product available as a direct investment, Isa or PepIsa transfer. The minimum investment is £3,000.

At maturity the plan is designed to return, the higher of: 20%of the capital invested or 65% participation in the FTSE 100,unlimited growth potential. The final valuation of the FTSE 100will be based on the last six months of the term, with thefinal value averaged daily over that period.

Full details of the guarantee and how it applies are as detailedin the Key Features document which is available from IFAs andbuilding society advisors.

How the Guaranteed Growth Plan works

Example: Index falls 25%
Start date Index level:4000 (£10,000 premium)
End date averaged Index level: 3000
Loss over the six-year term = 25%
Return on maturity = 20% (£12,000 maturity)
The value of the FTSE100 over the six-year period falls therefore120% of the original investment is returned.

Example: Index rises 25%
Start date Index level:4000 (£10,000 premium)
End date averaged Index level: 5000
Growth over the six-year term = 25%
Return on maturity = 20% (£12,000)

Example: Index rises 40%
Start date index level: 4000 (£10,000 premium)
End date averaged index level 5600
Growth over six-year term (40%)
Return on maturity 26% (£12,600)

About Norwich Union
Norwich Union is theUK's largest insurer. It is the UK's largest provider of life,pensions and investment products and one of the leading IFAproviders. IFAs provide around 75% of the company's long-termsavings business in the UK. Norwich Union has strategic allianceswith building societies and other leading UK brand names includingTesco Personal Finance and The Royal Bank of Scotland Group.Norwich Union’s news releases and a selection of images areavailable from Aviva's internet press centre at www.aviva.com/media.

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