Article date: 30 November 2007
Morley, the asset management division of Aviva, is pleased to announce the introduction of a new class of shares with euro hedging - the Aviva Morley Absolute TAA Fund.
The fund, which will be managed by Adrian Jarvis, responsible for investment functions, and Steve Cleal, is a sub-fund of Aviva Morley SICAV, which invests in variable equities, fixed equities and foreign currencies.
The TAA (Tactical Asset Allocation) strategy evaluates the attractiveness of different types of assets across all regions and countries and configures a portfolio that seeks to take advantage of inefficiencies in price structures.
The class of shares with euro hedging is designed for institutional investors who wish to diversify their portfolios. It uses futures on indices and term contracts on exchange rates, to create active positions, such that the deal costs are less with regard to actual equities. Under this structure, a small quantity of capital can be used to generate significant additional profitability.
"We are delighted to announce the launch of the class of stock with euro hedging in response to demand by our euro investors, who are increasingly less disposed to risking currency exposure," stated Mr Jarvis.
"Assets of absolute profitability are growing in popularity, especially after the recent flight from the stock markets and the sharp fall in profitability of fixed public equities. These factors have served to demonstrate the advantages of increasing diversification in a context whereby the volatility of international markets is consolidating strategies of tactical asset allocation and increasing popularity of products such as the Aviva Morley Absolute TAA Fund," he added.
Morley's specialist Strategy and Multi-Asset Funds team manages funds of more than €118.9 billion (as at 29 June 2007), using strategies of tactical asset allocation.
Notes to editors:
The value of investment in the fund can go up or down and can fluctuate, due to exchange rate variations. Investors may not recover the investment made. Past performance does not guarantee future performance.
You may request free copies of the Full Prospectus and the Simplified Prospectus, the Annual Report and Accounts of SICAV through Morley Fund Management Limited, from the following address: Calle Pinar no. 5, 28006 Madrid; or from Aviva Fund Services, from the following address: 34 avenue de la Liberté, 4th floor, L-1930 Luxembourg. R.C.S. Luxembourg B25708.
Morley is Aviva's UK asset management business. As at 30 September 2007, the companies making up the Morley Group manage approximately €240 billion through a global network of offices.
Morley manages funds for institutions and private individuals. It also manages various investment funds for private individuals marketed in the United Kingdom under the Norwich Union brand and in Europe under the Morley brand.
The property team manages more than €45 billion of property assets in the UK and Europe.
- Best Property Manager and Excellence in Financial Information - 2007 Institutional Management - Europe Award
- Top Management Company of the Year, according to the Thomson Excel SRI 2007 Report
- Property Manager of the Year - 2007 UK Pensions Award
- Morley G7 Fund, Best Fixed Equity Hedge Fund of the Year - 2006 Eurohedge Award
- Equity End User of the Year, 2006 Derivatives Week magazine DEAL Award
- Property Fund Manager of the Year - 2006 Pensions Management Award
- Best Commitment to the Improvement of Administrative Training - 2006 Engaged Investor Award
- Property Fund Manager of the Year - 2006 Property Week Award
- Socially Responsible Investment Provider of the Year - 2006 Global Pensions Award
- Company of the Year and Investor of the Year - 2005 Central European Property Award
- Property Manager of the Year - 2005 UK Pensions Award
Aviva is the European market leader in life assurance and pensions and a distinguished player in other global markets, which makes it the fifth largest insurance group in the world in terms of gross premiums as 31 December 2006.
Aviva's principal activities are long-term savings, fund management and general insurance, which generates total sales worldwide of £41.5 billion, with assets under management of £364 billion as at 31 December 2006.
The press section of the Aviva website (www.aviva.com/media) contains images and information about the company, its products and a press release archive.