Build balanced portfolios, says Norwich Union

Article date: 26 March 2004

Norwich Union says IFAs should not let their clients keep alltheir eggs in one basket. It says advisers should encourage theirclients to build a balanced portfolio rather than investing in asmall number of funds or sectors.

During the Diversification is a Balancing Act investmentseminars, Norwich Union showed how a portfolio that includesequities from different sectors and regions, bonds and commercialproperty is more likely to produce steady returns with lessvolatility.

Neil Davies, head of investment product development at NorwichUnion, said: "No single investment can be a top performer all thetime and in all economic environments. Combining differentinvestments in a client’s portfolio helps produce more stablereturns over time.

"Investing in fixed interest and commercial property fundswithin a balanced portfolio can reduce volatility. Fixed interestinvestments can provide a steady income and commercial propertyalso has the advantage that it does not follow the performance ofthe stock market and can produce steady returns when the stockmarket is falling.

"People should remember that the key to successfully building aportfolio is diversification. Having all your eggs in one basketcan be a high-risk strategy."


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James Evans 01904 452791 Out of hours 07790 487105
Louise Goffee 01904 452617 Out of hours 07810 057362
David Gwyer 01904 452828 Out of hours 07800 699508
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Rob Pell 01904 452659 Out of hours 07968 934091

Notes to Editors

  • The Norwich Corporate Bond fund is a moderate risk fundand aims to provide a total return in the medium to long-termabove that available on UK Government securities. Investorsbenefit from the opportunity to receive a competitive incomepaid quarterly and also enjoy the rewards of investing withhousehold names such as Barclays Bank and British Telecom. The£518.7m fund is managed by Paul Mingay.
  • The Norwich Property Trust aims to obtain optimum returnscompatible with security via income and capital appreciation,through investment in real property, property-related assets,Government and other public securities and units in collectiveinvestment schemes.
  • Aviva is one of the leading providers of life and pensions toEurope with substantial positions in other markets around theworld, making it the world’s seventh-largest insurance groupbased on gross world-wide premiums.
  • Aviva’s principal business activities are long-termsavings, fund management and general insurance, with world-widepremium income and retail investment sales from continuingoperations of around £30 billion and assets under management ofmore than £240 billion.
  • The Aviva media centre at includesfree images, company and product information, a news releasearchive and you can also register to receive regular Aviva newsreleases by e-mail.

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