NU Portfolio Plan

Cybersyme

Hi All

I invested 100k in the Norwich Union Guaranteed 2 Portfolio Plan in 2004, splitting it 70-30. It was in a Managed Fund as I'm no wizard when it comes to investing. However, it performed well and up to last year the 70k was almost 84k. Unfortunately, I did not cut and run to invest elsewhere and this year NU have said due to the credit crunch it is now 78k.
I am now in two minds whether I leave it until the 5yr stage and withdraw paying less charges or do I act now, as I fear the market/economy looks bleak for the future.
I do have other investments, but this is the main one and obviously I will need to seek expert advice and am reluctant to return to NU for advice.
Is there also a site I can monitor the fund. I have looked onthe FT website, but not sure if I have located the correct fund?
I have also researched various threads regarding the Portfolio Plan and so far none have really said it is a poor one, so I am quite optimistic.
Your help. expertise and advice wil be greatly appreciated. Thank You!

dunstonh

I am now in two minds whether I leave it until the 5yr stage and withdraw paying less charges or do I act now, as I fear the market/economy looks bleak for the future.

Before you do anything I suggest you go back to your IFA and learn about the product you have as you dont appear to know what you have. (although reading, it appears you didnt use an IFA and used NU)

I have also researched various threads regarding the Portfolio Plan and so far none have really said it is a poor one, so I am quite optimistic.

The portfolio (step down/level) bond is a very good product. Typically one of the best ones out there. The basics of the product are as follows:

The Portfolio Bond is a tax wrapper only. It doesnt make or lose money. It is a container for your investments. These range from a number of guaranteed options, cash fund, fixed interest, property and a range of unit linked funds (over 100). Its the investment funds that get the investment performance and flucutations.

You appear to have put the whole amount into the guaranteed fund. This fund will fluctuate in the interim 5 year period but on maturity (where it pays the money into the NU deposit fund still within the plan) it will pay the higher of the investment value or the original amount invested if the value has gone down.

Can you clarify your figures. You say you invested £100k. That should have been increased to to around £107k. Although you say you used NU so you probably only got around 102k. You say this went into the guaranteed fund. However, you then say it was split 70/30 but dont mention the other funds it was split into. You then say the £100k was 70k. So, your figures dont add up.

as I fear the market/economy looks bleak for the future.

the stockmarkets price in events like that in advance. You often find the markets perform better in recessions and worse in the period before one. Currently, a recession is priced in. Even if you do decide to pull out, you would lose the guarantee and pay penalties when there is no reason to do so. The idea of having the wide range of funds is to cater for all risk profiles.

Cybersyme

Hi Dunstonh,

Thanks for your reply and advice. I will as suggested return to speak with an IFA, but obviously wanted an insight before I did and then I intend to return to the forum for further advice.

The original investment was a 70/30 split and after the 1st year I withdrew the 30k, as this was an option. After further discussion I re-invested 10k into a Secured Growth Plan and 7k into Maxi ISA and 3k into a Mini ISA. After some expenditure the remaining 5k was transferred to my EasySave Tracker account.

I appreciate the Maxi ISA is a bit risky with the FTSE but I wished to risk some of it, which is unusual for me being normally cautious with money?

I'm pleased to hear the Portfolio Plan is a good product, but would it be worth me switching funds in the future, after taking advice of cause. Like I said I am cautious, but I suppose we all want to see a good return on our investments.

dunstonh

with the second post I am not actually sure you have the portfolio bond. The guaranteed fund is available on the portfolio bond but the secured growth plan is a different product. That said, what you describe sounds like a cross subsidising package of multiple products that the banks sometimes run.

EdInvestor

Could you clarify what you mean by a "70/30 split"?

jem16

dunstonh wrote: »

with the second post I am not actually sure you have the portfolio bond. The guaranteed fund is available on the portfolio bond but the secured growth plan is a different product.

The way I read it was that the OP withdrew £30k from the original investment and put part of it in the secured growth plan. The other £70k remained in the NU Portfolio Plan.

Cybersyme

I did originally invest 100k in the Portfolio Plan. The plan was split 70k and 30k, the latter I was able to access after 1yr with no penalties. 25k of this was reinvested in a Secured Growth Plan (10k), Maxi ISA (7K), Mini ISA (3k) and 5k into my EasySave Tracker.
The 70k remained in the Portfolio Plan, as Jem16 correctly stated, and last year the bond summary was 83k and this year read 78k.
These investments were all made via The Derbyshire who were then tied to Norwich Union.
My apologies for any confusion, I should have entered more details in the original post.

dunstonh

These investments were all made via The Derbyshire who were then tied to Norwich Union.

It sounded like a bank style package. It also explains why you didnt get the best of terms.

Just make sure that the fund in the portfolio bond is the guaranteed fund. I would guess its Guaranteed 2 S4. If so, nothing to worry about.

Cybersyme

Thanks Dunstonh,
It is the Guaranteed 2 S4 as you say, so thanks for all your help and advice. I look fwd to chatting with you all again once I have seen the IFA.

jem16

Cybersyme wrote: »

Thanks Dunstonh,
It is the Guaranteed 2 S4 as you say, so thanks for all your help and advice. I look fwd to chatting with you all again once I have seen the IFA.

Are you going to see an IFA or the tied "adviser" at The Derbyshire?

Cybersyme

I am told the advisor at The Derbyshire is no longer tied. But I intend to shop around. Are there any you recommend, as I'm located in Nottinghamshire?