Norwich Union launches European property fund

Article date: 5 February 2007

  • Morley to manage UK's first retail European propertyfund

Norwich Union is launching a European commercial propertyfund.

Customers for the first time will be able to invest in adiversified portfolio of office, industrial and retail property,and property-related assets across the European economic area andSwitzerland (excluding UK) via a daily priced fund. The maingeographic holdings are initially expected to be in France, Germanyand Spain.

The value of investments can go down as well as up, and you may notget back your original investment. The value of investments abroadmay rise and fall due to exchange rate movements.

The Norwich Union European Property Fund will be available toretail investors in the UK through the Norwich Union Portfoliobond, third-party life and pension links and as a retail collectiveinvestment. Developed by Morley Fund Management, Europe’sbiggest property fund manager, the fund will be managed by JulianTaylor (see notes to editors).

Neil Davies, director of marketing investments at Norwich Union,said: “This is an exciting launch. The fund is unique as itgives retail investors their first ever opportunity to invest in adaily-priced European property fund. This is the first retail fundof its kind in the UK and our research indicates that it will bepopular with investors and advisers.

"We believe that European commercial property is a great investmentopportunity and the fund will complement any existing UK commercialproperty investment. European property returns tend to lag those ofUK commercial property, and we anticipate that there is more growthto come.”

Julian Taylor, fund manager, said: “We want the fund tomirror the success of the Norwich Property Trust, which Morley alsomanages, particularly given the strong diversificationcharacteristics the fund offers and the attractive returns weexpect European property to generate over the next fiveyears.

“We have a strong pipeline of deals that we are working onand expect to announce the first acquisitions for the fund in thenear future. There are good areas of performance for skilfulmanagers to discover across Europe and the team at Morley is wellplaced to exploit these on behalf of our clients.”

Investors should remember: The value of property is generally amatter of a valuer’s opinion rather than fact. Investments inproperty can be illiquid and it may be difficult to encash atcertain times.


Press office contacts:

Norwich Union
David Gwyer 01904 452828 Out ofhours 07800 699508
Louise Soulsby 01904 452617 Out of hours 07800 699526

Morley Fund Management
Strahan Wallis 02078 098618 Outof hours 07910 044424

Notes to editors:

About the Norwich Union European Property Fund
TheNorwich Union European Property Fund is available to retailinvestors through Norwich Union’s Portfolio life bond.

The fund’s target asset mix is 85% direct property, 10%property related listed securities, 5% cash. The direct propertyassets will be initially focused on core markets of France, Germanyand Spain with the remainder split across the other eligiblecountries for investment.

The fund is a Luxembourg SICAV and managed by Morley FundManagement.

About the Norwich Union Portfolio life bond
Portfoliooffers a flexible way to invest for growth or income. Its minimuminvestment is £5,000 and investors can choose to put their money ina selection of 139 cash, bond, property, equity and with-profitfunds, which are run by Morley Fund Management and other fundmanagers.

The European Property Fund has an additional yearly charge of 0.6%in addition to Portfolio’s charges.

About Norwich Union
Norwich Union is the UK’slargest insurer. It is a leading provider of life, pensions andinvestment products and one of the largest financial adviser (FA)providers. FAs provide over 70% of the company's long-term savingsbusiness in the UK.

Norwich Union is the UK’s largest general insurer with amarket share of around 14%, with a focus on insurance forindividuals and small businesses.

Norwich Union’s news releases and a selection of images areavailable from Aviva's internet press centre

Morley Fund Management’s European Team
The fundmanager for the European Property Fund is Julian Taylor. He has astrong track record in managing funds with over 15 years’experience in the investment industry. Paul van der Vaart will beresponsible for the listed securities component of the fund.

The Morley European property team consists of 11 full time people,led by Ben Stirling, and part of a wider team of over 80 investmentprofessionals including a dedicated strategy and research team.Morley is the largest property fund manager in Europe** and runsseven successful property funds in continental Europe, primarilytargeted at institutional investors.

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 £165 billion fromoffices around the world as at 28 February 2006.

Morley manages both institutional and retail funds under the Morleybrand. It also acts as investment manager for a range of retail andinstitutional investment funds for a growing number ofclients.

Further information about Morley Fund Management can be found

**Oxford Property Consultants, December 2005.

The information published in this section is solelyintended for use by members of the media. Customers should not relyon the information contained within these news releases to form thebasis of investment decisions.

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