Your Pension @ Norwich Union is a stakeholder plan which can be taken out on either an individual or a group basis, with investors able to choose up to six internal funds. These are the stakeholder with-profits, balanced managed, UK index tracker, sustainable future managed, retirement protection and deposit.
There are also 18 external funds available from companies such as deutsche, Merrill Lynch, Invesco and SocGen. However these can only be accessed if the nil commission option is taken.
The annual management charge varies between 0.4 to 1 per cent, depending on which combination of funds are chosen, along with how much money is invested in the pension. Funds of between £10,000 and £19,999 will get 0.05 per cent deducted from the AMC, funds of between £20,000 and £49,999 will get 0.1 per cent deducted, while funds with more than £50,000 get 0.2 per cent deducted.
Norwich is a one of just four companies that offer a with-profits fund as a part of a stakeholder pension. The other three are Standard Life, Wesleyan and the Co-operative Insurance Society. However Norwich union is the only company to guarantee that any with-profits bonus added to the fund will not be removed once the fund is paid out.
Looking at the six internal Norwich Union funds available in the pension, the deposit fund is first quartile, the retirement protection, stakeholder with-profits and UK index tracker funds are second quartile, and the balanced managed fund is third quartile, based on £1,000 invested on a bid-to-bid basis with gross income reinvested over one year to May 14, 2001.