Norwich Union is adding two structured products to its investment range, both linked to the performa...
Norwich Union is adding two structured products to its investment range, both linked to the performance of the FTSE 100.
The Prosper Guaranteed Capital Bond (Issue 5) links to the UK blue chip index over a five-year period and provides 100% capital protection. The investment term is divided into 10 periods of six months investment and at the end of each period, the rise or fall in the FTSE 100 is calculated.
Norwich Union has capped the upside and limited the downside to 5.75% for any gain or loss experienced over each of these periods. Minimum investment in the product is £3,500.
The Prosper Income Bond (Issue 3) is also linked to the performance of the FTSE 100 index for five years but capital is not fully protected.
Investors can opt for a fixed income of 5.5% of the initial investment each year for five years, starting on 3 April 2004, or a fixed income of 0.44% of the initial investment each month for five years, starting on 3 May 2003. Alternatively, they can opt for a fixed lump-sum payment of 29.6% of the initial investment on 3 April 2008. Minimum investment is £5,000.
Capital invested in the Prosper Income Bond will fall if the FTSE 100 index is less than 70% of its starting value at any time during the five years and if at the end of the five-year term, it is below the original starting level.
If both these events occur, the percentage fall in capital will be equivalent to the percentage fall in the FTSE 100 index over that period.
Contact: 0845 300 0009.
Joined as head of strategy, multi asset, in June
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