Article date: 31 March 2005
Norwich Union today announces the launch of the NorwichStakeholder Savings Fund, a low cost, easily accessible medium-terminvestment fund, available from 6 April 2005.
This product will be available through a "light-touch" salesregime that makes it easily available to consumers. It will beavailable through Norwich Union’s partners such as buildingsocieties. Customers can invest as little as £20 for both regularand single premiums with no maximum, and the charges are capped at1.5% pa for the first 10 years and 1% thereafter with no othercharges*. Customers can invest directly into the fund or through anIsa or a PEP transfer.
The product is designed for a savings period of between five and15 years but there are no minimum or maximum terms specified,giving the customer complete control and flexibility. The fund willmeet stakeholder requirements, which limit equity exposure to 60%.At launch the Norwich Union Stakeholder Fund will hold around 55%in equities and around 45% in corporate bonds**.
Simon Quick, director of product strategy at Norwich Union,said: "This new product is a simple low cost, value for moneyproduct that is designed to meet the needs of investors looking fora medium term, low cost regular savings plan. The product is easilyavailable and gives the consumer flexibility in terms of theamount, length of time and how they wish to save either throughinvesting on a regular monthly basis or with ad hoc lump sums."
Press office contacts:
James Evans 01904 452791 outof hours 07800 699525
Louise Soulsby 01904 452617 out of hours 07800 699526
David Gwyer 01904 452828 out of hours 07800 699508
Rob Pell 01904 452659 out of hours 07800 699563
Notes to editors:
* In exceptionalcircumstances, an investor protection fee may be applied to ensurefairness between all investors in the fund.
** The value of this investment can go down as well as up.
- Price cap of 1.5% pa for the first 10 years, 1% thereafterwith no other charges
- Maximum equity content of 60%
- Available for direct investment, Isa and for PEP/Isatransfers
- Designed for savings between five and 15 years but no minimumor maximum terms specified
- £20 minimum premium for both regular and single premiumamounts – no maximum limit (subject to normal Isaallowances)
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 www.aviva.com/media.