to benefit investors must keep money invested for five years; enhanced allocations offered
Norwich Union International (NUI) has revamped its offshore offering with the launch of guarantee options on two of its bonds.
It will now offer an Inflation Protected Guarantee for with-profit fund investments in its International Core funds and International With- Profit bonds.
The guarantee will protect the original investment and track the Retail Price Index (RPI) for sterling investors. The US version will be linked to the US Consumer Price Index (CPI) and the euro to the Harmonized Index of Consumer Prices (HICP).
As part of the guarantee, investors will be required to keep their money invested for a minimum of five years, to benefit from any growth in the bonds or to access the original amount invested plus inflation.
The minimum investment for sterling is either £10,000, $15,000 or E15,000. The two bonds also have a 1% annual management charge.
An additional 1% allocation will also be introduced on all new investments in the bonds. Additional asset allocation is also available to investors with more than £50,000. This will start at 0.5%, rising to 2% for investments over £250,000.
An establishment fee of 1.5% will also be charged on its International Core Funds Bond wrapper.
If investors decide to buy the guarantee through the International With-Profits Bond then a 1.4% establishment fee will be added.
Mike Kirsch, commercial and marketing director at Norwich Union, commented: "This feature allows customers to benefit from potential growth in our with-profits fund while protecting the value of their initial investment.
"It also allows customers who remain fully invested for at least five years, to get their money back in real terms regardless of what happens to investment markets and inflation."
Kirsch said early exit penalties would apply if money was withdrawn from the bond before its fifth anniversary.
On top of this, NUI has also launched a Premier Portfolio Offshore bond. It launches with more than 1,500 funds pre-approved by NUI, which are available at no initial charge.
NUI has also designed an Inheritance Tax (IHT) planning version. The Estate Protection Plan combines Premier Portfolio with a new trust, the Estate Protection Trust, and can be used to reduce a potential IHT liability.
Clive Witter, chief executive of NUI, said: "The launch of Premier Portfolio opens a new market for us.
"We recognise that many of today's investors need a wide choice of funds when it comes to making investment decisions.
"We are delighted to have answered the needs of investors and their advisers, by giving them a product which offers almost any fund they want."
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