The Norwich Union UK Equity Funds are available through a range of investment products, some of which are explained below.
OEICs (ICVCs)
An OEIC (open-ended investment company), which we refer to as an ICVC (Investment Company with Variable Capital), is a product which allows you to invest in a range of funds.
When investing in an ICVC (OEIC) fund, money is added to that of other investors. This means it can be spread across a far wider range of, for example, equities and/or fixed interest securities, helping spread the risk to your money. ICVCs (OEICs) offer the potential for growth or income depending on the funds you choose to invest in.
Investment in an ICVC (OEIC) is one of the easiest ways for the investor to get into the stock market. It is also a great way to invest further if you have already subscribed to an ISA in the current tax year but would like to invest more than the maximum £7,000 allowance. This is based on current legislation and tax rules which may be subject to change in the future.
Norwich Union's range of UK Equity funds can be accessed through a Norwich Union ICVC (OEIC).
For more detailed information, including minimum investment levels, see Fund Literature section.
ISA
ISAs (Individual Savings Accounts) are a great way to invest up to £7,000 a year, tax-efficiently. Over 17 million people already have them1-and they're considered a ‘must have' by many investors looking to make the most of their money and beat the tax man.
They were introduced by the Government in 1999, to encourage us to save and replaced PEPs (Personal Equity Plans) and TESSAs (Tax Exempt Special Savings Accounts). An ISA can be made up of savings in cash, or longer-term investments like stocks and shares. In each year you can either invest in one maxi ISA which can include both these types of investments or you can have two mini ISAs, one for cash and one for stocks and shares.
But like all good things there are some limits:
A mini ISA gives you the opportunity to choose separate ISA providers for the different elements (cash or stocks and shares) which have different limits:
Mini cash ISA - £3,000
Mini stocks and shares ISA - £4,000
A maxi ISA allows you to only invest with a single ISA provider in just stocks and shares or both of the different elements. You can choose to invest up to £7,000 in stocks and shares, or up to £3,000 in cash and the rest in stocks and shares.
The Norwich Union UK Equity Funds are available within a Norwich Union ISA, which is a Stocks and Shares ISA, either as a Mini or Maxi option*. For more detailed information, including minimum investment levels, see Fund Literature section. Norwich Union do not offer mini cash ISAs.
If you utilise your full ISA allowance and then decide to withdraw some money, you can't add it back in during the same tax year. You also can't invest in a mini and maxi ISA in the same tax year.
This is based on current legislation and tax rules which may be subject to change in the future.
1 Source: Mintel as at June 2007
PEP Transfer
Investors with an existing portfolio of PEPs can transfer their assets to our funds without you losing the tax benefits that they offer. Whether your investment needs have changed or you are unsatisfied with the performance of their current investment manager, transferring their PEP is simple.
For more detailed information on PEP transfers with Norwich Union, including minimum investment levels, see Fund Literature section*.
* The Norwich UK Focus Fund is not available as a Norwich Union ISA or PEP transfer investment.
As a stocks and shares investment, you should be aware that the value can go down as well as up which could mean you may not get back all of your original investment.
WM46020 11/2007
