Norwich Union launches two new investment funds

Article date: 24 April 2002

Norwich Union is to launch two new investment funds, ManagedHigh Income Fund and World Leaders Fund, on 1 May 2002 as part ofits strategy of providing a more comprehensive range of investmentofferings.

  • Managed High Income Fund: This fund will invest mainlyin corporate bonds and is designed to provide a high level ofincome. The investment process will add value through individualbond selection and managing the exposure to the UK and otherglobal bond markets.
  • World Leaders Fund: This fund is designed to provideinvestment growth by investing in global equities. Activeinvestment management with thematic asset allocation and bottom-upstock selection drives the investment process.

Both funds will benefit from a robust approach to portfolio riskmanagement and will have transparent benchmarks and limits oninvestment exposure, with the aim of providing consistentinvestment outperformance over the long-term.

Norwich Union will be offering a special launch discount of 1%on the new funds until the end of June 2002.

Commenting on the funds launch, Cuimin MacMahon, NorwichUnion’s head of Collective Investments, said: “Thesetwo new funds demonstrate our commitment to developing a greaterrange of investment propositions for IFAs to offer their clients.The funds will be managed by two highly respected fund managers andwill seek to deliver consistent investment outperformance over thelong-term.”

Press office contacts:

James Evans, Norwich Union 08703 66 68 78 Out of hours 07790487105 Louise Goffee, Norwich Union 08703 66 68 70 Out of hours07810 057362 Ian Beggs, Norwich Union 08703 66 68 71 Out of hours07790 487533

Notes to editors

  • The value of an investment and the income from it can go downas well as up and is not guaranteed.
  • Norwich Union is the UK’s largest insurer. It is theUK’s largest provider of life, pensions and investmentproducts and one of the leading IFA providers. IFAs provide around75% of the company’s long-term savings business.
  • Norwich Union has strategic alliances with over 20 buildingsocieties and other leading UK brand names including TescoPersonal Finance and The Royal Bank of Scotland Group.
  • Norwich Union’s news releases are available on thisinternet site
  • A selection of images are available from the Norwich UnionNewscast site at www.Newscast.co.uk
  • An ISDN facility is available for studio quality interviews.Call the press office on 08703 66 68 78

For all life & pensions media enquiries 08703 66 68 78 Forall other media enquiries 08703 66 68 68

New funds details Managed High Income Fund

Fund manager
James Gledhill

AUTIF sector
UK other bonds

Estimated gross redemption yield
7.35% payable monthly *

Fund investment objective
Provide a high level of investment income

Fund investment policy
Diversified investment in global fixed interest securities issuedin a variety of currencies by governments, supranationalinstitutions and corporates. Forward currency transactions may beused for the hedging of currency risk.

Indicative credit risk profile
40.00% UK Investment grade
35.00% US high yield
15.00% European high yield
10.00% Emerging markets

Fund benchmark
40.00% Merrill Lynch Sterling Non-Gilt (A-BBB rated)
35.00% Merrill Lynch US high Yield (BBB-B rated)
15.00% Merrill Lynch Euro High Yield (BB-B rated)
10.00% Merrill Lynch Emerging Market Sovereign (BBB-B rated)

Risk management
Minimum 30% in investment grade bonds
European and US bonds largely hedged to sterling
Maximum 3% in any single bond
Maximum 3% exposure to a single company or corporate entity
Minimum 50 stocks held at launch progressing to 100+ 6
months after launch

Launch special offer
1.00% discount off the initial charge on all lump sum investmentsuntil 30 June 2002

Initial charge
4.00% (share class 1)
* Under current market conditions. This will vary as it isdependent upon a number of factors such as interest rates andinflation.

World leaders fund Fund manager
Michael Jennings

AUTIF sector
Global growth

Fund investment objective
To provide long-term capital growth

Fund investment policy
Investment in a well-diversified portfolio of global shares. Themanager will identify core themes that are considered to offerattractive long-term investment opportunities and the fund will beinvested in accordance with these themes. The themes will changeperiodically over time.

Asset allocation (approximate)
40.00% USA
20.00% United Kingdom
30.00% Europe
7.00% Japan
3.00% Other

Fund benchmark
MSCI World Index (hedged into sterling)

Risk management
Maximum 25% exposure (outside the benchmark weighting) to any onegeographic region.
Maximum 25% exposure (outside the benchmark weighting) to any oneindustry sector.
Maximum 5% of fund will be in any one stock
Target minimum of 90% of the portfolio will have marketcapitalisation in excess of £2 billion.
Major currencies (US Dollar, Euro and Yen) largely hedged intosterling.
European and US bonds largely hedged to sterling
Minimum 60 holdings in the portfolio at any time.

Launch special offer
1.00% discount off the initial charge on all lump sum investmentsuntil 30 June 2002

Initial charge
5.25% (share class 1)

Norwich Union Investment Funds Limited
Registered in England No 2503054
A member of the Norwich Union Marketing Group, Members of which areregulated by the Financial Services Authority for life assurance,pensions and investment products.
Registered office: 8 Surrey Street, Norwich NR1 3NG

Morley Investment Services Limited is the Authorised FundManager.
Registered in England No 1973412.
Registered Office: No 1 Poultry, London EC2R 8EJ.
Morley Investment Services Limited and Norwich Union
Investment Funds Limited are members of the Norwich Union
Marketing Group, members of which are regulated by the
Financial Services Authority for life assurance, pensions andinvestment products.
Morley Investment Services Limited is a member of the InvestmentManagement Association.

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