Norwich Union International solves a problem for corporate investors

Article date: 22 April 2004

Norwich Union International has introduced the second in aseries of solution-based campaigns aimed at simplifying offshoreinvestment for independant financial advisers (IFAs) andinvestors.

The new campaign "Solutions for corporate investors" providescorporate investors with an alternative solution to deposit-basedinvestments.

According to the British Bankers Association fourth quarterstatistics, small and medium-sized enterprises held almost £40bn ondeposit in 2003. However, with business accounts attracting lowrates of interest many companies are considering longer-terminvestments with some risks and better potential for their cashreserves.

The campaign will focus on Norwich Union's International Core FundsBond, and particularly on the capital redemption option. Thecapital redemption option allows increased control over the timingand in some cases the rate, at which corporate investors pay tax onany growth on their investment.

The International Core Funds Bond is a lump sum investment bondwith a minimum investment of £10,000, €15,000 or $15,000. Itaims to increase the value of money invested in a potentiallytax-efficient way, over the medium to long term - atleast five years. Its investment funds have different levelsof risk and their value can go down as well as up and is notguaranteed.

It is available on a life or capital redemption basis. The lifeversion, with no fixed term, has lives assured. The capitalredemption version, with a 99-year term, has no lives assured,making it particularly suitable for corporate investors.

As part of the campaign, a comprehensive sales pack has beendeveloped to assist IFAs in targeting this growing market. The newpack contains detailed materials such as brochures, technicalguides, prospecting material and sales aids.

Paul Sherlin, marketing director at Norwich Union International,said: "We see the corporate market as offering tremendous growthpotential for medium to long term investments and the new pack isaimed at supporting IFAs in realising that potential.

"There is sometimes confusion as to whether an offshore or onshorebond represents the best option for a client but for corporateinvestors the position is much clearer. With our new InternationalCore Funds Bond we now have a more attractive product for thismarket. Its capital redemption option means increased control overwhen the bond can be cashed in. The wide range of investmentsectors will allow IFAs to target companies looking for alonger-term investment solution rather than just beating cash overthe next few months."

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For further information:

Norwich Union International
Mike Gogan
00 353 1 802 8415

Financial Dynamics
Christine Wood
020 7269 7253

Notes to editors:

About the Norwich Union International Core Funds Bond

  • Offers a carefully select choice of funds from the mostpopular fund sectors, all within one bond.
  • Is simpler and more flexible - offering a select choice ofinternal and external unit linked and with-profit funds.
  • Investors have the option to create their own risk portfolioor use Investment Management Selection (IMS) Fund of Funds as analternative.

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