Norwich Union is improving its range of funds of funds by adopting a more flexible approach to investment.
Manager will be able to invest in more than 1,900 funds
Norwich Union is improving its range of funds of funds by adopting a more flexible approach to investment.
It is switching its funds of funds from a fettered to unfettered* investment style. This means the fund manager will be able to pick investments from a selection of more than 1,900 funds. Previously they could invest only in a selection of about 80 funds available through the Portfolio investment bond. The change will be introduced on 11 October.
Norwich Union offers three funds of funds through Portfolio: the NU Balanced Funds of Funds, NU Cautious Fund of Funds, and NU Growth Fund of Funds. These are managed on a day-to-day basis by Investment Manager Selection Ltd (IMS), which selects and monitors underlying investments.
Removing the fettered constraints and giving IMS greater investment freedom should have a positive effect on future fund performance without increasing the risk profile of the funds.
Neil Davies, head of investment product development, said: "Funds of funds are a core part of the Norwich Union range of investments and this enhanced proposition is now available through onshore and offshore bonds and some pension products."
He added: "This is good news for our customers and IFAs. Moving from a fettered to an unfettered investment style means our customers will be able to invest in an even wider choice of funds.
"Funds of funds are a good choice for many customers because they allow them to diversify their investments across a wide range of sectors and markets. There is a huge range of funds and management styles to choose from and for some of our customers it is a good idea to leave picking the best one in each sector to the professionals.
"By investing in a wide range of different funds, the funds of funds can achieve greater diversification. This can help reduce risk while producing consistent performance."
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James Evans 01904 452791 Out of hours 07790 487105
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 www.aviva.com/media.
About Portfolio
*A fettered fund of funds can invest only in a restricted range of funds. An unfettered fund of funds can invest in an unrestricted range of funds.
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.
It offers three funds of funds:
Norwich Union Cautious Fund of Funds
Designed for investors seeking a lower risk investment option. This fund invests in both equity and bond funds with a greater emphasis on bonds that reflects the lower risk characteristics The fund’s investment policy is diversified and can invest across global bonds and equity markets, with greater emphasis on bonds than the Balanced Fund of Funds and the Growth Fund of Funds. The fund invests in a selection of funds selected by IMS.
Norwich Union Balanced Fund of Funds
Designed for investors seeking a more balanced approach to investment. This fund invests in both equity and bond funds with an aim of providing long-term capital appreciation and income. The fund’s investment policy is diversified and can invest across global bond and equity markets, with a greater emphasis on equities than the Cautious Fund of Funds and a greater emphasis on bonds than the Growth Fund of Funds. The fund invests in a selection of funds selected by IMS.
Norwich Union Growth Fund of Funds
The fund is designed for investors who wish to diversify their investment across a range of funds investing in an international share portfolio and are willing to accept the risk of fluctuations in global security markets. This fund aims to provide long-term capital growth. The fund’s investment policy is diversified and can invest across global bonds and equity markets, with greater emphasis on equities than the Cautious Fund of Funds and the Balanced Fund of Funds. The fund invests in a selection of funds selected by IMS.
Portfolio also:
- Offers valuable guarantees - for investments into the With-Profit Fund, there is a 5th and 10th anniversary money-back guarantee. The 5-year money-back guarantee is a special offer 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 external funds and a choice of two charging structures within a single bond
- Funds on offer – offers investors the choice of income and growth funds. Investors can choose from a range of 31 internal funds and 51 funds managed by 12 industry-renowned fund managers