Norwich Union will be offering a new tranche of its guaranteed fund it was announced today. The fund is meant to provide capital growth through investing in a broad range of assets.
The fund guarantees that the value on the fifth anniversary will not be lower than the original payment into the fund.
The fund is used to invest in equities within and outside of the UK, as well as for bonds, property and cash. Between 40% and 45% of the fund will be invested in equities and property, but this could fluctuate according to market conditions.
The fund is managed and is available through Norwich Unionâ€™s Portfolio investment bond. The minimum investment is £5000 and the guarantee only applies on the fifth anniversary. Should money be withdrawn before then the customer may not get the amount invested back.
The director of investment at Norwich Union said in a statement, â€œThe Norwich Union Guaranteed Fund is extremely popular with our customers. They like it because it allows them to benefit from stock market growth while protecting their original investment regardless of what happens to the stock market.â€
The new tranche of the Guaranteed Fund will be available from 25 September 2006.