First quartile performance for Norwich Union balanced distribution fund

Article date: 3 July 2006

Norwich Union’s Balanced Distribution fund marks its thirdanniversary in July 2006 with first-quartile performance sincelaunch.

The £346m fund’s objective is to provide income withprospect for long-term growth by investing in a wide range ofshare, bonds and property.

Since its launch in July 2003, the fund has*:

  • Achieved first quartile ratings in the ABI UK Life Funds– Distribution-Life sector since launch
  • Achieved 37.1% growth (net of tax/gross of charges) fromlaunch until 31.5.06
  • Rated second out of 60 funds in sector between 31.5.05 and31.05.06

*Past performance is not a guide to futureperformance.

Neil Davies, director of investment at Norwich Union, said:“This good news for our customers and demonstrates ourcommitment to generating good returns for them. The Norwich UnionBalanced Distribution fund has performed well since its launch inJuly 2003 with overall total returns exceeding 35%. It is also lessvolatile compared to our competitors’ balanced funds becauseit invests in a wide spread of assets. It will appeal to cautiousinvestors who are prepared to take more risk for potential returnsthat are better than those offered by a bank or building societyaccount.”

The Balanced Distribution fund is managed by Steve Cleal ofMorley Fund Management. Its target asset mix is: 45% equities, 30%property and 25% bonds.

Steve Cleal, manager of the Norwich Union Balanced DistributionFund, said the fund benefits from a combination of property, bonds,high yield equities and tactical asset allocation.

He said: "Bonds have offered poor value to investors over recentyears and, as a result, the fund has had a lower weighting in fixedinterest than other funds in the sector. The prospects for propertyand equities have been far more promising and high weightings havebeen maintained in these asset classes. These positions havecontributed to the strong performance of the fund sincelaunch.”


Press office contacts:
David Gwyer 01904452828 Out of hours 07800 699508
Louise Soulsby 01904 452617

Notes to editors
About the NorwichUnion Balanced Distribution fund

The Balanced Distribution Fund was launched in July 2003 and isavailable through Portfolio, which is Norwich Union’sinvestment bond. The aim of the fund is to provide a good level ofrising income with the potential for capital growth. To achievethis, it invests in a mix of UK equities, UK corporate bonds andproperty. It will appeal to investors who want a diversifiedportfolio to spread risk, generate income and offer the potentialof capital growth.

The Balanced Distribution Fund offers:

  • Potential for capital growth in addition to a regularincome
  • Choice of income options – distribution option, regularwithdrawals and adding the income to your bond for growth
  • Flexible income payment – monthly, quarterly,four-monthly, half-yearly or yearly

About the manager
The Norwich Union BalancedDistribution fund is managed by Steve Cleal of Morley FundManagement. He has been responsible for the fund since its launchand is a member of the Asset Allocation Committee and head of thebalanced funds team at Morley.

About NorwichUnion
Norwich Union is the UK’s largest insurer.It is a leading provider of life, pensions and investment productsand one of the largest Financial Adviser (FA) providers. FAsprovide over 70% of the company's long-term savings business in theUK.

Norwich Union is the UK’s largestgeneral insurer with a market share of around 14%, with a focus oninsurance for individuals and small businesses. NorwichUnion’s news releases and a selection of images are availablefrom Aviva's internet press centre at

About Morley Fund Management
Morley Fund ManagementLimited is the UK-based asset management business of Aviva plc.Firms within the Morley group of companies manage £156bn fromoffices around the world as at 30 April 2006.

Morley manages both institutional and retail funds under theMorley brand. It also acts as investment manager for a range ofretail investment funds, marketed in the UK under the Norwich Unionbrand, and international funds marketed under the Aviva Fundsbrand.

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