Norwich Union is to offer a new series of its Guaranteed Fund, which will be available from 5 September 2005.
The Guaranteed Fund is designed to provide capital growth through investing in a wide range of assets, and also guarantees that the value on the 5th anniversary will be no less than the original payment into the fund.
Each series runs for five years and invests in UK and international equities, bonds, property and cash. At launch between 40% and 45% of the fund will be invested in equities and property but this figure could rise or fall depending on market conditions.
The fund is actively managed and aimed at cautious investors. It is available through Norwich Union’s Portfolio investment bond and the minimum investment is £5,000.
Neil Davies, head of investment at Norwich Union, said: “The Guaranteed Fund is popular with cautious investors who want to invest in the stock market but don’t want to take too much of a risk with their money. The fund is popular with financial advisers because it offers exposures to a wide range of assets.”It invests in a diversified range of assets that can include UK and global equities, property and fixed interest. The fund is actively managed by our experienced fund managers.”
The guarantee applies only on the fifth anniversary. If money is taken out before or after that date, the customer may not get back the amount invested.