Article date: 2 November 2001
Norwich Union – the UK’s largest life insurer– has announced the introduction of 57 external funds to itscomprehensive range of investment bonds.
Designed to meet individual investor needs regardless ofinvestment objective or attitude to risk, the latest improvementswill help IFAs offer clients extra flexibility and greater choice.Managed by 12 of the industry’s leading asset managers, thechoice of funds available will include index trackers, managedfunds, fixed interest, UK and international equity, specialistequity and specialist managed. For the first time investors willhave access to reputable, high quality external fund managers*,through the convenience of a Norwich Union bond wrapper. The newfunds will be made available to any client who has invested in thePortfolio Bond and FlexiBond since 2nd October 2000 and any Bond2000 investor since 25th June 2001.
Julie Chong, head of investment propositions, Norwich Union,said: "The availability of high calibre external funds throughNorwich Union bonds will allow us to offer a wider range offlexibility in investment than has previously been available. Thebenefits of being able to access a total of 86 funds with varyinginvestment styles are available to both new and existing customersalike.
"For IFAs, the increased flexibility combines the scope tomanage a client's investment portfolio with the convenience of asingle investment bond. Through the introduction of these externalfunds, we are now able to provide a convenient way to switchbetween funds and fund managers without incurring the taxdisadvantages of encashment."
Christopher Cade, assistant director at Baring Asset Management,commented: "Having access to a substantial number of fund managersallows a client to cherry pick, providing a route to the best ofthe best. No single fund manager can be good at all things at alltimes. This approach allows a client to select a group or managerfor a particular area of expertise and provides your clients withgreater flexibility - switching is easier, quicker, usually cheaperas well within one single umbrella.
"In addition, a client does not need to have the administrativeburden of monitoring a variety of funds from different managers. Ifa fund underperforms, a client can again switch as above."
Piers Denne, director of third party sales at ThreadneedleInvestments, added: "Having such excellent funds available willundoubtedly increase the appeal of Norwich Union's bond products,and help make them even more attractive to investors."
To ensure that the funds offered by Norwich Union demonstrateinvestment performance, investment skill and management excellence,the funds chosen have been assessed by Standard & Poor, theworld’s leading credit rating agency, using its fund ratingsystem to identify top- performing funds.
Alongside the launch of the external funds, Norwich Union isalso expanding the fund range on the Bond 2000 to include ALL ofthe funds already available on the Portfolio Bond and FlexiBond.This means that IFAs and clients no longer have to choose between asimple charging structure or a wider fund range. In addition, thenumber of funds available for investment will also be expanded toallow clients to take full advantage of the increased fundrange.
Policyholders will be able to choose to invest in up to 10 fundsat any one time. Also, should their financial circumstances change,policyholders will also have four – an increase from one– free switches per year to easily change their investment tosuit their needs. If further switches are required then this isalso possible, at a cost of £25 per switch.
For more information please contact Norwich Union on 01904452634, or visit the Norwich Union website at www.norwich-union.co.uk/ifa
* The following external fund managers are available through theNorwich Union range of investment bonds:
Aberdeen Asset Management
Baring Asset Management plc
Gartmore Investment Management
Investment Management Selection (IMS) Limited
JP Morgan Fleming Asset Management
M & G Investments
SocGen Asset Management
Notes to editors
- Norwich Union’s news releases are available on thiswebsite
- A selection of images are available from the CGNU Newscastsite at www.newscast.co.uk
- An ISDN facility is available for studio quality interviews.Call the press office on 08703 666873
- The new funds will be made available to any client who hasinvested in the Portfolio Bond and FlexiBond since 2nd October2000 and any Bond 2000 investor since 25th June 2001.
- The value of an investment can go down as well as up and isnot guaranteed. Full written details are available onrequest.
For all life & pensions media enquiries 08703 66 68 73
For all other media enquiries 08703 66 68 68
Press office contacts:
James Evans 08703 66 68 78
Out of hours 07790 487105
Louise Goffee 08703 66 68 70
Out of hours 07810 057362