Norwich Union is entering the protected product market with the launch of a four-year guaranteed cap...
Norwich Union is entering the protected product market with the launch of a four-year guaranteed capital bond called Prosper.
The product, available from 28 January to 1 March, offers a guaranteed return of 100% of the sum invested, as well as growth linked to the FTSE 100. The index is measured over eight six-month periods.
In each of the periods, the bond's gains or losses will mirror the index's, with maximum gain capped at 6.5% and maximum loss limited to 6.5%. This means the maximum growth of the fund will be 52% but any fall below 100% will not be suffered by the investor.
The underlying derivatives are supplied by Deutsche Bank and if investors remove their investment before term there is no guarantee they will get the original sum invested back.
Investors will be entitled to a bonus of 0.35% if they invest before 11 February and 0.15% before 1 March. A commission of 3% is available to intermediaries.
Neil Davies, proposition manager at Norwich Union, said the current climate made less risky products more popular. He said: 'With recent volatility in the market, guarantees have grown very important. This product offers prospects of good growth with no risk to capital.'
For further details, call 01904 452634.
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