Norwich Union launches manager of managers funds

Article date: 16 May 2005

Norwich Union is to launch a range of manager of managers funds.The new funds will give Norwich Union’s customers access tosome of the best investment managers in the world.

Norwich Union has appointed Aon Asset Management to select theunderlying managers, track their performance and change them whennecessary. Aon was selected following a rigorous due diligenceprocess conducted by Norwich Union and Morley Fund Management.Morley will be responsible for determining asset allocation acrossthe range of funds.

The Norwich Union manager of managers funds range will compriseIncome, Cautious, Balanced and Growth funds, and will be availableacross Norwich Union’s OEIC, ISA and life products. The fundswill be launched on 23 May 2005 and be available through IFAs andNorwich Union’s partnerships.

Simon Quick, director of product strategy at Norwich Union,said: "Launching manager of managers funds is a key part of ourstrategy to continually evolve and enhance our investment productsand bring some of the world’s best investment managers withineasy reach of investors. Norwich Union’s funds will appeal tocustomers who are looking for durable, one-stop investments thathold a wide range of assets backed up by strong research andmonitoring teams.

"Monitoring and managing an investment portfolio is an ongoingprocess that can prove difficult and time consuming for investors,which is why the partnership of Aon and Morley is so valuable. Bothcompanies have an enormous amount of expertise and theirinvolvement means we have the best people and processes to find,appoint, monitor and switch investment managers.

Adrian Swales, managing director of Aon Asset Management, said:"Having established a strong presence in the pensions market withour manager of managers services, Norwich Union has recognised howour expertise could benefit existing and new life and investmentcustomers through our management of their funds. Our partnershipmeans that individuals and smaller business clients can now accessthe same investment opportunities that were previously onlyavailable to the larger corporates."

-ends-

Press office contacts: 
David Gwyer 01904452828 Out of hours 07800 699508
Angus Duncan (Aon) 020 7086 8012
Fiona Baker (Morley Fund Management) 020 7809 8617

Notes to editors:

Product information
Manager of managers funds offera different way of investing to the traditional method of investingin one fund with one manager. The key to manager of manager fundsis that money in the fund is invested with several managers ratherthan just one. They give investors access to a range of managersinvesting in a wide range of assets around the world.

The Norwich Union manager of managers funds range will beavailable through ISAs and ISA and PEP transfers. Minimum monthlycontributions will be £100. Minimum lump-sum contributions will be£3,000 for ISAs and PEPs and £5,000 for OEICS.

Charges

Initial

AMC

TER

OEIC Income fund:

4.25%

1.6%

1.685%

OEIC Cautious fund:

4.25%

1.65%

1.755%

OEIC Balanced fund:

5%

1.7%

1.845%

OEIC Growth:

5%

1.8%

2%

Charges through Portfolio life bond
Two chargingstructures are available for investments in Portfolio - level andstep down option. Additional charges are made for investments inthe manager of managers funds: income fund (0.55%), cautious(0.60%), balanced (0.65%), growth (0.75%).

Asset mix for Oeic funds

Norwich Manager of Manager Income Fund
This fundsaims to achieve a regular & growing level of income withprospects for long-term capital appreciation. The aim of the fundis to deliver a yield 120% or over of the FT All Share Index. Itwill have a diversified investment in UK equities and fixedinterest securities. Allocation to fixed interest securities,equities and cash will vary over time.(indicative, forinformation)

UK equity (71.50%), UK corporate bonds (26.40%), UK cash(2.10%).

Norwich Manager of Manager Cautious Fund
This fundaims to achieve capital growth over the medium to long term.

It will have a diversified investment in equities and fixedinterest securities. Allocation to fixed interest securities,equities and cash will vary over time. At least 50% of total assetswill be in sterling/euro denominated investments.

Asset allocation (indicative, for information)

UK equity (33.33%), European equity (5%), US equity (5%), Japanequity (1%), Asian and Pacific equity (3%), emerging markets (1%),global bonds (4.65%), UK govt bonds (13.33%), UK corporate bonds(16.66%), UK cash (5%)

Norwich Manager of Manager Balanced Fund
Investmentobjective: To achieve long term capital growth.

Investment policy: Diversified investment within and acrossglobal securities markets. Allocations to bonds, equities and cashwill vary over time. At least 10% of investments held will benon-UK equities and at least 50% of total assets will besterling/euro denominated.

Asset allocation (indicative, for information)

UK equity (47%), European equity (10%), US equity (8%), Japanequity (1%), Asian and Pacific equity (7%), emerging markets (4%),global bonds (2%), UK Govt bonds (8%), UK corporate bonds (8%), UKcash (5%).

Norwich Manager of Manager Growth Fund
Investmentobjective: To achieve long term capital growth.

Investment policy: Investment in a diversified portfolio ofglobal equities. Allocations to specific global markets will varyover time. While the fund manager may hold non-equity assets, theoverall policy is for up to 100% to be invested in equities at anygiven time.

Asset allocation (indicative, for information)

UK equity (57.50%), European equity (9%), US equity (7.50%),Japan equity (1%), Asian and Pacific equity (15%), emerging markets(5%), UK cash (5%).

Asset splits in life funds include property

Norwich Union is the UK's largest insurer. It is the UK'slargest provider of life, pensions and investment products and oneof the leading IFA providers. IFAs provide around 75% of thecompany's long-term savings business in the UK.

Norwich Union has strategic alliances with building societiesand other leading UK brand names including Tesco Personal Financeand The Royal Bank of Scotland Group. Norwich Union’s newsreleases and a selection of images are available from Aviva'sinternet press centre at www.aviva.com/media.

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