Norwich Union has reported strong sales of bonds and collective investments to Q3 2006, with collective sales up 96% and bond sales rising 36% compared to Q3 2005.
Sales of collective investments were substantially improved, with sales to date increasing by 96% to GBP1.7 billion – almost double those achieved in the same period last year.
Norwich Union said that bond sales for the first nine months of 2006 were strong and rose by 36% to GBP2.5 billion, up from GBP1.9 billion in 2005. The introduction of a market-leading inflation protected guarantee has also resulted in a 54% growth in with-profit bond sales to GBP552 million, the Aviva-owned company said.
Norwich Union said that the figures prove that its efforts to improve the range of investment products on offer are paying off. These efforts include launching several new products, such as the Schroders-managed Norwich UK Special Situations fund and the JPMorgan Asset Management-managed Norwich UK Growth and Value fund, as well as the addition of 61 new funds to its Portfolio Life bond.
Norwich Union also added a unique inflation protected guarantee to its with-profits bonds. The guarantee, which was launched in January, protects customers’ original investments and tracks the Retail Price Index. The guarantee means that investors who keep all their money invested for at least five years will either benefit from the growth in the with-profit fund or get back at least what they paid in – plus inflation.