Norwich Union its “putting its money where its mouth is” by pledging to pay out if its Cat standard funds are out-performed by rivals.
NU is promising if any of its four most popular funds don't achieve better than average returns against its competitors, investors will receive a payment into funds equivalent to its annual management charge of one per cent.
The provider is claiming the guarantee reflects its confidence in the “real advantages” of Cat standard funds.
NU director of sales and marketing Mark Skinner says: “The guarantee shores up the IFAs 'reasons why'responsibilities. Even if the fund fails to achieve superior returns, Norwich Union will make a payment, which will boost fund value.”