Norwich Union bond payout

kholmes · 12 March 2009 at 3:55PM

Hi, My father has a portfolio bond with Norwich Union, his August 2008 statement values it at £38,071, if he was to cash it in today, the value would be £33,458.
That’s a £4613 drop, does this sound right, has anyone else experienced this sort of drop.
TIA

FoxtonsRIP · 12 March 2009 at 4:07PM

He's lucky. Check out the performance of the stockmarket in the last year

kholmes · 12 March 2009 at 4:31PM

[FONT=&quot]I was shocked, perhaps I shouldn’t be.[/FONT]

gozomark · 12 March 2009 at 4:38PM

thats about a 13% drop - could have been alot worse

FTSE is down 30% odd since August

dunstonh · 12 March 2009 at 4:58PM

The NU portfolio bond is just a tax wrapper. A container for investments. They have around 300 funds available ranging from low risk cash funds, guaranteed funds, with profits funds, fixed interest funds, property funds and equities in all the major areas.

The bond itself doesnt make or lose money. Where you choose to invest does that. If its the guaranteed fund, then this will have a fluctuating value in the interim but on maturity (year 5) it will increase the value back to the original amount if the value has gone down.

As others have said, the drop seems very small and nothing to be concerned with.

Norwich Union bond payout

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