Norwich Union extends with-profits five-year money-back guarantee

Article date: 29 November 2004

 Guarantee proves popular with customers andadvisors

Norwich Union is extending its five-year money-back guarantee onall new With-Profit Fund investments in the Portfolio investmentbond.

The offer was originally set to close on 31 December 2004 butwill now be extended to 6 February 2005. The guarantee has beenextended because it has proved popular with IFAs and customers anddemand for guarantees remains strong.

This feature guarantees to return a policyholder’soriginal investment on the policy’s fifth anniversaryregardless of investment conditions. The extension also applies tooffshore with-profits investments in the Norwich UnionInternational Core Funds Bond and Norwich Union InternationalWith-Profit Bond.

In addition to the five-year guarantee of return of originalinvestment, an extra 1% allocation will continue to be offered onall new investments in Portfolio bond. Exit penalties in thefirst three years will also be increased by 1% during the period itapplies.

Neil Davies, head of investment at Norwich Union, said: "Thefive-year money-back guarantee is proving popular with ourcustomers and their IFAs. Many of our customers still have acautious attitude to risk and, while they like the idea of havingsome exposure to the stock market, capital security is a concern.We believe this guarantee will provide them with the reassurancethey need. The combination of the special allocation terms andmoney-back guarantee make Portfolio look very attractive."


Press office contacts:
David Gwyer 01904452828 Out of hours 07800 699508
Rob Pell 01904 452659 Out of hours 07800 699563
Louise Soulsby 01904 452617 Out of hours 07800 699526
James Evans 01904 452791 Out of hours 07800 699525

Notes to editors:

  • Norwich Union is the UK’s largest insurer. It is aleading provider of life, pensions and investment products and oneof the leading IFA providers. IFAs provide around 70% of thecompany’s long-term savings business
  • 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 news releases and a selection of imagesare available from Aviva's internet press centre at

About the Portfolio five-year money-back guarantee

  • The five-year guarantee will apply to investments heldcontinuously in the With-Profit Fund for five years that are fullywithdrawn on, or within two weeks after, the 5thanniversary. A penalty will be incurred if money is withdrawn fromthe fund before the 5th anniversary
  • The guarantee does not apply to the With-Profit Income Fund,or to switches into the fund
  • If any money is taken out of the fund before the fifth ortenth anniversary through regular withdrawals, one-off withdrawalsor switches into other funds, then the amount guaranteed will bereduced in proportion to the number of units cancelled. Any unitscancelled to meet charges will not reduce the guarantee
  • This guarantee does not apply to units added after the startdate of the bond e.g. by way of switches into the With-ProfitFund
  • Norwich Union reserves the right to withdraw or amend thisoffer at any time without notice.

About the Norwich Union Portfolio investment bond

  • Portfolio is Norwich Union’s investment bond. It offersa flexible way to invest for growth or income. Portfolio’sminimum investment is £5,000 and investors can choose to put theirmoney in a selection of, with-profit, equity, bond, property,distribution, and cash funds.

Portfolio also:

  • 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 can be removed at any time. On the Guaranteed Fund,there is a money-back guarantee on the 5th anniversary
  • Is flexible - offering a wide choice of internal and externalfunds and a choice of two charging structures within a singlebond3
  • Offers a wide range of funds –investors have the choiceof income and growth funds. They can choose from a range of 31internal funds and 51 external funds managed by 12industry-renowned fund managers such as Invesco Perpetual, MerrillLynch, Schroders and Threadneedle. The external funds includethree funds of funds managed by IMS Ltd.

Back to top