Norwich Union is launching a second edition of its Prosper Income Bond paying a fixed income of 6.25% pa net for the four-year term. The new bond will be available from Monday 18 November.
Norwich Union is launching a second edition of its Prosper Income Bond paying a fixed income of 6.25% pa net for the four-year term. The new bond will be available from Monday 18 November.
Prosper Income is a single premium investment bond – minimum investment Ł5,000 – which gives the security of a guaranteed income.
Main product features:
- Guaranteed income of 6.25 % p.a. net
- Fixed four year term
- Minimum investment Ł5,000 – no maximum
- Performance linked to the DJ Euro Stoxx 50 Index
- Capital is protected if the DJ Euro Stoxx 50 Index does not fall by more than 30 % of the level at the start of the term, at any time during the last three years of the four year investment period, and the Index is not lower than the level at which it was when the term started.
If both the above events occur, the original capital will be reduced. Any reduction to the original investment will be a true reflection of the fall in the index – the reduction in capital will match the fall in the Index.
The closing date for investment is 27 December 2002 with the four-year term starting on 6 January 2003. Early investors will benefit from an extra bonus of 0.35% if they invest before 9 December 2002. This reduces to 0.15% thereafter.
Neil Davies, Head of Investments at Norwich Union, said: "This new bond offers a good way of securing a high level of income at a time when traditional deposit income rates are very low.
“As well as a very competitive level of income we have also built in a degree of capital protection which gives customers a good level of reassurance. Any fall in the index in the first year, beyond the protection, will be ignored. After this point, any falls in the index outside of the capital protection, will only result in a matched reduction in capital.
“We believe that matching the fall in the market to capital is an important point which customers need to understand, ensuring there is no gearing effect on capital reductions which has been a prevalent feature on many other providers bonds launched in the market.”
Further information on Prosper is available by calling Norwich Union on 0845 9444800 or visit the website at www.norwichunion.com
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Press office contacts:
James Evans, Norwich Union 08703 66 68 78
Out of hours 07790 487105
Louise Goffee, Norwich Union 08703 66 68 70
Out of hours 07810 057362
Ian Beggs, Norwich Union 08703 66 68 71
Out of hours 07790 487533
Notes to editors
- Norwich Union is the UK’s largest insurer. It is the UK’s largest provider of life, pensions and investment products and one of the leading IFA providers. IFAs provide around 75% of the company’s long-term savings business.
- Norwich Union has strategic alliances with building societies and other leading UK brand names including Tesco Personal Finance and The Royal Bank of Scotland Group.
- Norwich Union’s news releases are available on the Aviva plc website at www.aviva.com
- A selection of images are available from the Norwich Union Newscast site at www.newscast.co.uk
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