Norwich Union is to launch two new investment funds, Managed High Income Fund and World Leaders Fund, on 1 May 2002 as part of its strategy of providing a more comprehensive range of investment offerings.
Norwich Union is to launch two new investment funds, Managed High Income Fund and World Leaders Fund, on 1 May 2002 as part of its strategy of providing a more comprehensive range of investment offerings.
- Managed High Income Fund: This fund will invest mainly in corporate bonds and is designed to provide a high level of income. The investment process will add value through individual bond selection and managing the exposure to the UK and other global bond markets.
- World Leaders Fund: This fund is designed to provide investment growth by investing in global equities. Active investment management with thematic asset allocation and bottom-up stock selection drives the investment process.
Both funds will benefit from a robust approach to portfolio risk management and will have transparent benchmarks and limits on investment exposure, with the aim of providing consistent investment outperformance over the long-term.
Norwich Union will be offering a special launch discount of 1% on the new funds until the end of June 2002.
Commenting on the funds launch, Cuimin MacMahon, Norwich Union’s head of Collective Investments, said: “These two new funds demonstrate our commitment to developing a greater range of investment propositions for IFAs to offer their clients. The funds will be managed by two highly respected fund managers and will seek to deliver consistent investment outperformance over the long-term.”
Press office contacts:
James Evans, Norwich Union 08703 66 68 78 Out of hours 07790 487105 Louise Goffee, Norwich Union 08703 66 68 70 Out of hours 07810 057362 Ian Beggs, Norwich Union 08703 66 68 71 Out of hours 07790 487533
Notes to editors
- The value of an investment and the income from it can go down as well as up and is not guaranteed.
- Norwich Union is the UK’s largest insurer. It is the UK’s largest provider of life, pensions and investment products and one of the leading IFA providers. IFAs provide around 75% of the company’s long-term savings business.
- Norwich Union has strategic alliances with over 20 building societies and other leading UK brand names including Tesco Personal Finance and The Royal Bank of Scotland Group.
- Norwich Union’s news releases are available on this internet site
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For all life & pensions media enquiries 08703 66 68 78 For all other media enquiries 08703 66 68 68
New funds details Managed High Income Fund
Fund manager
James Gledhill
AUTIF sector
UK other bonds
Estimated gross redemption yield
7.35% payable monthly *
Fund investment objective
Provide a high level of investment income
Fund investment policy
Diversified investment in global fixed interest securities issued in a variety of currencies by governments, supranational institutions and corporates. Forward currency transactions may be used for the hedging of currency risk.
Indicative credit risk profile
40.00% UK Investment grade
35.00% US high yield
15.00% European high yield
10.00% Emerging markets
Fund benchmark
40.00% Merrill Lynch Sterling Non-Gilt (A-BBB rated)
35.00% Merrill Lynch US high Yield (BBB-B rated)
15.00% Merrill Lynch Euro High Yield (BB-B rated)
10.00% Merrill Lynch Emerging Market Sovereign (BBB-B rated)
Risk management
Minimum 30% in investment grade bonds
European and US bonds largely hedged to sterling
Maximum 3% in any single bond
Maximum 3% exposure to a single company or corporate entity
Minimum 50 stocks held at launch progressing to 100+ 6
months after launch
Launch special offer
1.00% discount off the initial charge on all lump sum investments until 30 June 2002
Initial charge
4.00% (share class 1)
* Under current market conditions. This will vary as it is dependent upon a number of factors such as interest rates and inflation.
World leaders fund Fund manager
Michael Jennings
AUTIF sector
Global growth
Fund investment objective
To provide long-term capital growth
Fund investment policy
Investment in a well-diversified portfolio of global shares. The manager will identify core themes that are considered to offer attractive long-term investment opportunities and the fund will be invested in accordance with these themes. The themes will change periodically over time.
Asset allocation (approximate)
40.00% USA
20.00% United Kingdom
30.00% Europe
7.00% Japan
3.00% Other
Fund benchmark
MSCI World Index (hedged into sterling)
Risk management
Maximum 25% exposure (outside the benchmark weighting) to any one geographic region.
Maximum 25% exposure (outside the benchmark weighting) to any one industry sector.
Maximum 5% of fund will be in any one stock
Target minimum of 90% of the portfolio will have market capitalisation in excess of Ł2 billion.
Major currencies (US Dollar, Euro and Yen) largely hedged into sterling.
European and US bonds largely hedged to sterling
Minimum 60 holdings in the portfolio at any time.
Launch special offer
1.00% discount off the initial charge on all lump sum investments until 30 June 2002
Initial charge
5.25% (share class 1)
Norwich Union Investment Funds Limited
Registered in England No 2503054
A member of the Norwich Union Marketing Group, Members of which are regulated by the Financial Services Authority for life assurance, pensions and investment products.
Registered office: 8 Surrey Street, Norwich NR1 3NG
Morley Investment Services Limited is the Authorised Fund Manager.
Registered in England No 1973412.
Registered Office: No 1 Poultry, London EC2R 8EJ.
Morley Investment Services Limited and Norwich Union
Investment Funds Limited are members of the Norwich Union
Marketing Group, members of which are regulated by the
Financial Services Authority for life assurance, pensions and investment products.
Morley Investment Services Limited is a member of the Investment Management Association.