Norwich Union has introduced a five-year money-back guarantee on all new with-profit fund investments in its portfolio investment bond, hoping to tap into more risk-averse investors.
The insurer says the guarantee will apply regardless of how the market fares over the time period.
The offer will remain open between now and the year-end, unless it becomes fully subscribed before then, NU says.
It will also apply to offshore with-profits investments in the Norwich Union International Core Fund Bond and Norwich Union International With-Profit Bond.
Neil Davies, head of investment product development at Norwich Union, says: "We are further improving our with-profits bond offering with a guarantee to return investors’ money after five years, regardless of what happens to the stock market."
"We understand that capital security is a concern for some investors and we believe this new guarantee will provide them the reassurance they need."
The minimum investment is £5,000, and to benefit from the money-back guarantee the money held must be fully withdrawn within two weeks after the fifth anniversary.
The guarantee will not apply to the With-Profit Income Fund, or to switches into the fund, and an early redemption charge will apply for money withdrawn before the fifth anniversary
Apart from the money-back guarantee, NU will continue offering an extra 1.5% allocation rate on all new investments in the bond.IFAonline
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