Norwich Union is to launch a distribution fund to be available via a lump-sum investment bond that w...
Norwich Union is to launch a distribution fund to be available via a lump-sum investment bond that will replace its existing Portfolio Bond and Bond 2000 products.
The Balanced Distribution fund is invested 40% in UK corporate bonds, 40% in UK equity income and 20% in a high income property unit trust.
The new investment bond, also to be called Portfolio, is to be launched on 7 July and will offer access to 31 internal funds and 52 external funds drawn from 12 other providers, as well as explicitly-charged with-profits and a Guaranteed fund with a money-back guarantee on the fifth anniversary of investment.The bond has two charging structures, termed Step Down and Level. The first is the same as used on the current Portfolio Bond and has an administration charge for the first five years and a management charge throughout the term, calculated on the basis of the funds within the bond. Allocation rates are up to 101.5%.
The Level Option has a management charge throughout the term, calculated on the basis of the funds chosen and the amount invested, with lower charges for larger investments up to £50,000, above which the lowest charge applies. Allocation rates are 100%. Early exit charges apply in the first five years and investors can make four free switches between funds.
To mark the launch, the group is offering an extra allocation of 1.5% for an unspecified period. A range of intermediary commission options are available.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till