Regarding the letter headlined, Norwich Union's with-profits guarantee is unfair to other investors (Money Marketing, February 19), it is not true to say that “any guarantee taken by an investor would be to the detriment of those investors remaining in the with-profits fund”.
The cost of the guarantee will be met out of the free assets of the fund and will therefore not affect any other investor in the fund.
Using a tiny proportion of the free assets to provide a guarantee will attract new investors to the fund, which is ultimately to the benefit of all investors in the fund.
The new five-year money-back guarantee demonstrates Norwich Union's commitment to with-profits and further improves our portfolio bond product.
It has been introduced in response to demand from advisers and customers and to help rebuild confidence in with-profits investment.
Head of actuarial business support,
Norwich Union Life