Aviva Funds International Ltd has added a European Property Fund to the Aviva Group’s Privilege Portfolio range in Luxembourg, and is currently seeking authorisation to market the new fund across much of Europe.
Aviva Funds International Ltd has added a European Property Fund to the Aviva Group’s Privilege Portfolio range in Luxembourg, and is currently seeking authorisation to market the new fund across much of Europe. The Privilege Portfolio - European Property Fund is aimed primarily at institutional investors in the key markets in which Privilege Portfolio is available. Authorisation for the Property Fund is being sought in Italy, Germany, Spain, France, Belgium, Sweden, Norway and Austria.
The Investment Adviser to Privilege Portfolio, Morley Fund Management Limited has contracted another Aviva company, OHRA Asset Management in the Netherlands to act as sub- adviser to the Fund. OHRA Asset Management has over 10 years experience in managing portfolios of property securities and its OHRA Real Estate Fund (Onrererend Goed Fonds) has delivered three and five year returns of 7.6% and 6.7% respectively (Bloomberg).
The Privilege Portfolio - European Property Fund aims to achieve capital growth through investment in the quoted securities of European property. The Fund is denominated in Euros and non-Euro holdings will be hedged into Euros.
Key Benefits of investing in Real Estate Companies include:
- Transparent cash flows throughout fixed lease periods
- Hedge against inflation, with leases generally including rent increases in line with inflation
- Defensive stocks with low volatility
- Expected returns between that of equities and bonds
- Low correlation with other asset classes
Commenting on the Fund launch, drs Raymond Lahaut, fund manager at OHRA Asset Management, said: “Now is an ideal time to invest in quoted European property companies, since they are currently highly undervalued, with large discounts to Net Asset Value and relatively high dividend yields. The Privilege Portfolio - European Property Fund offers investors an asset class with a low correlation to equities and bonds, thus adding value to a balanced mandate by decreasing its risk profile.”
Raoul Bachmann, Continental European Retail Director at Morley Fund Management, said: “By adding a European Property Fund to the Privilege Portfolio range we are seeking to offer professional investors access to a diversified portfolio of quoted companies across a number of European countries and sectors. Holding such companies via a regulated structured product provides the advantages of investing in real estate, such as low volatility and regular cash flows through rents, with the additional advantages of liquidity and diversification across countries, regions and sectors.”
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For further information:
Stephen Roberts, Head of European Retail Marketing
Tel: +352 40.28.20.319
Fax: +352 40.83.58.319
e-mail: stephenroberts@privilege.lu
GSM: +352 021.265.611
Notes to editors:
- Privilege Portfolio European Property Fund:
Fund Manager - drs Raymond Lahaut. Raymond joined Ohra Asset Management in 2001 as a Portfolio Manager – Real Estate. Previously, he held a similar role at Insinger de Beaufort Asset Management from 1999 to 2001.
Key Features include:
- Benchmarked against the EPRA (UK Capped at 25%)Index
- Domiciled in Luxembourg
- Initial offer price: EUR 5.00 per share for Retail and Private share classes, EUR 100.00 for the Institutional share class on 28th January 2003
- Daily dealing
- Minimum investment: EUR 3,000 for Private and Retail share classes and EUR 1,000,000 for the institutional class
- Initial charges: up to 6% (Retail Share Class), up to 5% (Private Share Class), 0% (Institutional Share Class).
- Annual charges: 2.00% (Retail Share Class), 1.50% (Private Share Class), 0.75% (Institutional Share Class).
- The value of an investment in the Privilege Portfolio funds can fall as well as rise. The investor may not get back the original amount invested.
- Aviva Funds International Limited is the Marketing and Distribution Agent for Privilege Portfolio. Privilege Portfolio is the Luxembourg domiciled investment fund of the Aviva Group with 30 sub-funds ranging from lower risk money market and bond funds through international and regional equity funds to more speculative single country and theme funds.
- Morley Fund Management Limited is the Investment Adviser to Privilege Portfolio and is a member of the Norwich Union Marketing Group, members of which are regulated in the UK by the Financial Services Authority for life assurance, pensions and investments. Morley Fund Management Limited and Aviva Funds International Limited are Aviva companies.
- Aviva is the UK's largest insurance group, one of the top- five life insurers in Europe and has substantial positions in other markets around the world. Aviva is the world’s seventh- largest insurer based on worldwide gross written premiums.
- Aviva’s principal business activities are long-term savings, fund management and general insurance, with worldwide premium income and investment sales from ongoing business of more than Ł28 billion, and over Ł200 billion in assets under management at 31 December 2001.