Norwich Union to launch £200m UK special situations fund

Article date: 10 April 2006

  • Top Schroders managers Richard Buxton and Andy Brough torun fund

Norwich Union is planning to launch a new fund for investors.The £200m Norwich UK Special Situations fund has been designedexclusively for Norwich Union and will be jointly managed byRichard Buxton, manager of Schroder UK Alpha Plus Fund, and AndyBrough, manager of Schroder UK Mid 250 Fund.

The aim of the Norwich UK Special Situations Fund is to providelong term outperformance of the FTSE All Share. It is aconcentrated portfolio of 40 to 60 stocks consisting of the beststock ideas from both managers. Stocks will be selected andposition sizes determined independently of index weightings. Thefund is scheduled to be launched in late May subject to FSAapproval.

Mike Kirsch, commercial and marketing director at Norwich Union,said: “This is an exciting launch for Norwich Union and thefund will appeal to more experienced investors who are prepared totake higher risks in their search for higher returns.

“We have been working very hard to widen the range of ourequity investments, and Norwich UK Special Situations willcomplement our existing product range and the recent launches ofthe Norwich UK Growth and Value and multi-manager funds.

“Schroders has unquestioned expertise in this area andRichard Buxton and Andy Brough have excellent reputations; theywill create focused portfolios that will make the most of theirbest ideas.”

Robin Stoakley, managing director, UK Retail at Schroders, said:“In an environment where returns from equities are relativelylow, there is a high demand from investors for this type ofspecialised, focus UK equity product. The fund is designed toharness the skills and expertise of two highly-rated and highprofile fund managers, who have already established a clear anddisciplined investment process that has been used successfully intwo existing funds, Schroder UK Alpha Plus and Schroder UK Mid 250Funds.

“With the strong sales, marketing and distributioncapabilities of Norwich Union and Schroders Investment Managementexpertise this will be a very powerful and competitiveproposition.”

The fund launch is part of Norwich Union’s drive todevelop its investment range and increase sales of collectiveinvestments. In the past 12 months it has:

  • Launched the Norwich UK Growth and Value fund, managed byJPMorgan Asset Management
  • Appointed James Dalby as head of fund propositions
  • Added three fund of funds to its ISA range
  • Appointed John Clougherty as director of collectiveinvestments sales
  • Launched four manager of managers funds


Press officecontacts:
James Evans 01904 452791 Out of hours 07800699525
David Gwyer 01904 452828 Out of hours 07800 699508
Louise Soulsby 01904 452617

Schroders press contacts:
Lucy Rae 020 76586168
Caroline smith 0207658 3365

Notes to editors
About theNorwich UK Special Situations fund

Fund size: £200m. Approximate number ofholdings at launch: 50 stocks. IMA sector: UK All Companies.Benchmark: FTSE All Share index. Initial charge: 5%. AMC: 1.2%.TER: 1.75%. Standard initial commission: 3%. Standard renewalcommission: 0.5%. Investment levels for ISA investors: lumps sums£500, regular monthly savings £50.

Investment Objective
To providelong term capital growth by investing primarily in a focusedportfolio of UK companies.

Investment Policy
Investmentprimarily in equity securities listed or traded on regulatedmarkets in the UK. The fund may also invest in companies domiciledor quoted outside the UK where those companies have material orcritical operations within, or derive significant business from,the UK. Fixed interest securities may be included in the portfolio.The fund may invest in any of the following financial instrumentsin order to achieve its investment objective: transferablesecurities, money market instruments, units in collectiveinvestment schemes, deposits and derivatives and forwardtransactions

About the fund managers
Thefunds will be managed by Andy Brough, manager of the Schroder UKMid 250 fund, and Richard Buxton, manager of Schroder UK Alpha Plusfund.

Andy Brough’s fund is 1st quartile over 1, 3 and 5 yearsand his fund is AAA rated by S&P and OBSR. RichardBuxton’s fund is 1st quartile over 1 and 3 years.It is AA rated by S&P, and A rated by OBSR.

About Schroders Plc
Schroders isa global asset management company with £122.5 ($211.0 /€178.2) billion under management as at 31 December 2005. Itsclients are major financial institutions including banks andinsurance companies, local and public authorities, charities,pension funds, high net worth individuals and retail investors.

Its aim is to apply specialist asset management skills inserving the needs of clients worldwide and in delivering value toour shareholders. With one of the largest networks of offices ofany dedicated asset management company and over 250 portfoliomanagers and analysts covering the world's investment markets, weoffer clients a comprehensive range of products and services.

Further information about Schroders can be found at Issued bySchroder Investment Management Ltd, which is authorised andregulated by the Financial Services Authority. For regular updatesby e-mail please register online at forour alerting service.

About NorwichUnion
Norwich Union is one of the UK's biggest lifeinsurers. It is a leading provider of life, pensions and investmentproducts and one of the largest Financial Adviser (FA) providers.FAs provide over 70% of the company's long-term savings business inthe UK.

Norwich Union has strategic alliances with building societiesand other leading UK brand names including CIS and The Royal Bankof Scotland Group. Norwich Union’s news releases and aselection of images are available from Aviva's internet presscentre at

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