Morley to launch High Income Property Fund

Article date: 10 February 2003

Morley Fund Management (Morley) is set to launch the Morley HighIncome Property Unit Trust (MHIPUT), which will be available toinvestors in March 2003. The unit trust will be invested in a mixof direct property, property related corporate bonds and UKgovernment gilt issues and aims to provide a gross yield of around6% per annum.

The MHIPUT will be the latest addition to Morley's range offunds, aimed at private client investment managers, discretionaryasset managers, specialist investment advisers and other wholesaleinvestors.

Morley remains positive on the outlook for commercial propertyon a medium term view and sees the asset class as an importantelement of a diversified investment portfolio.

The MHIPUT draws on the breadth of investment expertise acrosstwo of Morley's most successful asset classes. The lead managerwill be Gerardine Davies, who already manages the highly successfulNorwich Property Trust (£658m); the bond portfolio will be managedby Morley's leading corporate bond team, headed by Paul Mingay.

Key features of the fund include:

  • Easy access to the commercial property market
  • Highest yielding authorised property unit trust
  • Proposed portfolio model of 75% direct property, 20% bonds and5% cash
  • No gearing or complex share structure
  • Estimated gross yield of 6% pa, payable quarterly
  • Minimum investment of £10 000
  • Qualifies as a charity, pension (incl. SIPP and SASS) andindividual (not PEP/ISA) holding

Commenting on the launch of the fund, Alan Gadd, MD of UK Retailat Morley Fund Management, said: "The Morley High Income PropertyUnit Trust is targeted primarily at professional advisers who seethe wisdom, especially after the experience of the last few years,of diversifying investment portfolios across a broader range ofasset classes. The fund has been structured to include bonds inorder to provide lower volatility and higher liquidity than otherproperty unit trusts. This defensive mix should especially appealto high net worth private clients, pension trustees and charities.We also anticipate that the fund will become available to investorsthrough our links with other distributors, which is a growingaspect of Morley's retail strategy."

Gerardine Davies, Fund Manager of the Morley High IncomeProperty Unit Trust, said: "We anticipate that property willproduce total returns in the 7-8% per annum range over the nextfive years. Although there is a slowing of rental growth in certainsectors, the commercial market remains strong in terms of investordemand. In addition, the Fund has been positioned to invest inproperties with particularly long leases, with an average leaselength of about 14 years."


For further information please contact:
Fiona Baker, Head of Corporate Communications 020 7809 8617 MorleyFund Management

Notes to editors

The value of an investment in the Morley High Income PropertyUnit Trust and any income from it can go down as well as up.Investors may not get back the original amount invested.

Full details of the Fund including charges can be found in theKey Features, which is available on request.

Morley Property Credentials

The property team at Morley manages in excess of £10 billion ofUK Property assets (as at 31.12.02), making Morley one of thelargest property fund managers in the UK. The team consists of over50 investment professionals and manages a range of funds, includingsegregated and pooled pensions as well as a retail unit trust.

Morley Fixed Income Credentials

Morley's fixed income team employs 47 investment professionalsin London, Singapore and Boston. With over £48bn of funds undermanagement (as at 31.12.02), Morley is one of the leading UK basedfixed interest managers. As part of this the Corporate Bond teamemploys 8 fund managers, who run institutional, internal and retailfunds, including the Norwich Corporate Bond Fund and the NorwichHigher Income Plus Fund.

Morley Fund Management

Morley Fund Management ('Morley') is an independently managed,London based, asset management business with over £106 billionunder management (as at 31.12.02). It actively manages a diverserange of asset classes and has investment management operations inLondon, Tokyo and Singapore and an associate office in Boston*.

Morley is a wholly owned subsidiary of the Aviva Group andmanages both institutional and retail funds under the Morley brand.It also acts as investment manager for a range of retail investmentfunds, marketed in the UK by Norwich Union, and international fundsmarketed under the Privilege Portfolio brand.

The other funds in the Morley Retail range are the Morley UKFocus Fund, the Morley European Focus Fund, the Morley GlobalThemes Fund and the Morley Sustainable Futures OEIC range. Morleyis also the investment manager for Norwich Union's range of retailfunds, as well as a unit trust for Nationwide Building Society.

*Norwich Union Investment Management, an Aviva Group company

Further information about Morley Fund Management can be found

Issued by Morley Investment Services Limited.

Morley Fund Management is a business name of Morley InvestmentServices Limited, registered in England No. 1973412 and Morley FundManagement Limited, registered in England No. 1151805. Both aremembers of the Norwich Union Marketing Group, members of which areregulated by the FSA for life assurance, pensions and investments.Morley Investment Services Limited is a member of the InvestmentManagement Association. Registered Offices: No. 1 Poultry, LondonEC2R 8EJ. Both are Aviva companies.

For correspondence please contact us at Morley Fund Management,PO Box 6056, Basildon SS15 5UU.

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