Morley G7 Fixed Income Fund returns 16.20% in first year

Article date: 12 March 2004

Morley Fund Management’s G7 Fixed Income hedge fund hasreturned a net 16.20% in its first year. With a Sharpe Ratio of4.96, the fund has shown impressive performance since its launch on1 February 2003.

The $135.5m (£71.6m)* G7 Fixed Income Fund takes long and shortpositions in fixed income securities and their derivatives,investing primarily in those countries comprising the G7. It alsohas some emerging market and credit exposure.

Managed by Shahid Ikram, Head of Aggressive Alpha and HedgeFunds at Morley, the Fund aims to produce superior and robust riskreturn profiles by combining different investment opportunities(such as choice of markets, yield curves and stocks) within strictrisk parameters. The resulting portfolio is largely independent ofthe direction of the market and adds value consistently over bothmarket and business cycles.

Neil Smith, Head of Investment Trusts at Morley Fund Management,said: "We couldn’t have asked for a better start toMorley’s G7 Fixed Income Fund. It has demonstrated itsability to deliver exceptional performance in difficult marketconditions.

"We have already seen widespread interest from the institutionalmarket for this product, with over $90m of inflows in the last fourmonths. With Shahid Ikram’s performance record and robustinvestment process, we’re confident that this Fund willcontinue to deliver superior returns for its investors."

Key features of the Morley G7 Fixed Income Fundinclude:

  • Fund size: $135.5m (£71.6m)*
  • 3 Share Classes: US Dollar, Sterling, Euro
  • Minimum investment: $200 000 / £150 000 / €200 000
  • Management Fee: 1%
  • Performance Fee: 20% on returns over 1 month LIBOR
  • Guernsey Domicile: Dublin and Channel Islands listings
  • Monthly Dealing at NAV

*as at 20 February 2004

Sharpe Ratio calculated using Monthly NAVs 1/2/03-31/1/04,source: Morley Fund Management

NAV / Performance source: Credit Suisse Fund AdministrationLimited

For further information please contact:

Fiona Baker, Head of Corporate Communications 020 7809 8617

Morley Fund Management 07736 883 832

Notes to editors

For sales enquiries please contact:

Charles Hoblyn, Head of Investment Sales 020 7809 6428

Morley Fund Management

Morley’s Fixed Income team

Morley has one of the largest and most experienced fixed incometeams in the UK, with a total of £58.7 billion of funds undermanagement (as at 31 December 2003). The fixed income team employs47 investment professionals based in London, Singapore and anassociate office in Boston, managing, amongst others, segregatedand pooled pension funds as well as a number of high profile retailfunds.

Morley Fund Management

Morley Fund Management (‘Morley’) is anindependently managed, London based, asset management business withover £111 billion* under management (as at 31.12.03). It activelymanages a diverse range of asset classes and employs in the regionof 900 staff worldwide based in London, Singapore and an associateoffice 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 Aviva Funds brand.

*Not including mortgage assets

**MFM International Limited, an Aviva company


Pensions Management Provider Awards 2003 – Best PropertyFund Manager

Fund Manager of the Year - Pensions Week Awards 2002

Specialist Manager of the Year - UK Pensions Awards 2002

Insurance Fund Manager of the Year (awarded to Norwich Union) -Standard and Poor’s 2002

Sustainable and Ethical Investment and Asset Management Award -Liveable City Awards 2002

Morley Fund Management is a business name of Morley FundManagement Limited, registered in England No. 1151805. A member ofthe Norwich Union Marketing Group, members of which are authorisedand regulated in the UK by the Financial Services Authority forlife assurance, pensions and investments. Registered Office: No. 1Poultry, London EC2R 8EJ. A member of the Investment ManagementAssociation.

Morley Fund Management is also a business name of MorleyInvestment Services Limited and Morley Fund ManagementInternational Limited. All are Aviva companies.

Contact us at Morley Fund Management, No. 1 Poultry, London EC2R8EJ.

Telephone calls may be recorded for training and monitoringpurposes.

Back to top