Norwich Union introduces special offer for new portfolio bond investors

Article date: 27 August 2004

Norwich Union is launching a special offer for new customers whoinvest in its Portfolio investment bond.

It is increasing allocation rates by 1% across all ages, premiumsizes and funds. Allocation rates determine the percentage of asingle premium invested at the outset of the investment.

The new allocation rate for an investor aged 74 and under with a£50,000 premium is 103%. This means that a customer matching thisprofile with a £50,000 premium would have £51,500 invested in hispolicy. (Example assumes step down charging structure. See note toeditors).

The special offer will be introduced on 31 August 2004 and maybe withdrawn or varied at Norwich Union's discretion at any time.Exit penalties in the first three years will also be increased by1% during the period it applies.

Neil Davies, head of investment product development at NorwichUnion, said: "This is good news for our customers. The specialoffer means they will see more of their money invested from dayone. We have put a lot of work into developing Portfolio and it ispaying off. Since its launch, sales have done very well and it ispopular with IFAs and investors.

"Portfolio is popular because it offers investors a choice of 31internal funds and more than 50 external funds managed by 12 fundmanagers. A number of these funds have been developed with cautiousinvestors in mind. When Portfolio was launched it included a newexplicit charge structure, which gave investors a clear picture ofthe charges that apply to their investment."


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Rob Pell 01904 452659 Out of hours 07968 934091
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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 newsreleases and a selection of images are available from Aviva'sinternet press centre at

About Portfolio

Portfolio offers a flexible way to invest for growth or income.Its minimum investment is £5,000 and investors can choose to puttheir money in a selection of cash, bond, property, distribution,equity and with-profit funds, which are run by Norwich Union andother fund managers.

Step down option: The Step down charging structure is oneof two charging structures available with Portfolio and chargesreduce after five years. The alternative is the Level option wherecharges remain constant throughout the policy’s life. Themanagement charge is 1% to 1.95% depending on fund selected.Administration charge: Investments below £10,000: 1%pa for firstfive years. Investments of at least £10,000, 0.5%pa for first fiveyears.

Portfolio, Norwich Union’s investmentbond:

  • Offers valuable guarantees - for investments into theWith-Profit Fund, there is a 5th and 10th anniversarymoney-back guarantee. The 5-year money-back guarantee is a specialoffer that ends on 31 December or earlier if fully subscribed. Onthe Guaranteed Fund, there is a money-back guarantee on the 5thanniversary
  • Is flexible - offering a wide choice of internal andexternal funds and a choice of two charging structures within asingle bond
  • Funds on offer – offers investors the choice ofincome and growth funds. Investors can choose from a range of 31internal funds and 51 funds managed by 12 industry-renowned fundmanagers

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