Norwich Union insurance targets wary investors

Norwich Union has launched a new fund designed for cautious investors concerned about stock market volatility.

The Protector Fund, which will be launched on 1 March 2005, aims to provide long-term capital growth and protect the share price from falling below 80 per cent of its peak level.

According to the insurer, it is the first fund to take advantage of new FSA rules covering the use of derivatives in collective investments

The fund has an active component, which is invested in a mix of equity and bond funds, and a protected component invested in short-term cash deposits.

Neil Davies, head of investment at Norwich Union, said the fund is ideal for those investors wary of stock market falls.

"Our research shows that there is a huge demand for products that allow investors to invest in the stock market while limiting the risk of being exposed to its volatility," he added.

"This fund adds another dimension to our portfolio of funds available through our collective investment products."