Norwich Union has announced that investment bond sales have risen sharply following the launch of its new Portfolio bond.
Norwich Union has announced that investment bond sales have risen sharply following the launch of its new Portfolio bond.
Portfolio was launched on 7 July 2003 and replaced two earlier Norwich Union bonds, Bond 2000 and Portfolio Bond.
Since its launch, sales of Portfolio through the IFA channel have been 54% higher than combined sales figures for Bond 2000 and Portfolio Bond between January and July 2003. Total sales through all channels from 7 July 2003 have been about Ł660m.
Neil Davies, head of investment product development at Norwich Union, believes that Portfolio is popular because it is simple and offers investors a choice of 31 internal funds and more than 50 external funds managed by 12 fund managers. When Portfolio was launched it included a new simple and explicit charge structure, which gives investors a clear picture of the charges that apply to their investment.
He said: "We put a lot of work into Portfolio and that has paid off. Since its launch, sales of Portfolio have done very well.
"Portfolio has been in demand with investors because it offers access to a broad range of funds including Norwich Union’s Guaranteed, Property, Distribution, Corporate Bond and With-Profit funds. The recently relaunched Guaranteed Fund is a popular option because it offers a broad asset mix and a guarantee that investors will not lose their capital on the fifth anniversary. The product literature has been designed to be simple and free of jargon while charges are also easy to understand."
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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 in the UK.
- 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 and a selection of images are available from Aviva's internet press centre at /media
About Portfolio
- Portfolio offers a flexible way to invest for growth or income. Its minimum investment is Ł5,000 and investors can choose to put their money in a selection of cash, bond, property, distribution, equity and with-profit funds, which are run by Norwich Union and other fund managers.
- Portfolio, Norwich Union’s investment bond:
- Offers valuable guarantees - for investments into the With-Profit Fund, there is a 5th (a special offer introduced on 9 February, which ends on 31 December or earlier if fully subscribed) and 10th anniversary money-back guarantee. On the Guaranteed Fund, there is a money-back guarantee on the 5th anniversary
- Is simpler and more flexible - offering a wide choice of internal and external funds and a choice of two charging structures within a single bond
- Has clear and easy to understand charges - explicit charging provides investors with a clear picture of the charges applicable to their investment
- Funds on offer – offers investors the choice of income and growth funds. Investors can choose from a range of 31 internal funds as well as 51 external funds managed by 12 industry-renowned fund managers
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