The London-based asset management division of the CGU Group is launched today as "Morley Fund Management - a member of the CGU Group", one of CGU's three core businesses alongside its life and general insurance activities.
The London-based asset management division of the CGU Group is launched today as "Morley Fund Management - a member of the CGU Group", one of CGU's three core businesses alongside its life and general insurance activities.
The merger of Commercial Union and General Accident to establish CGU in June 1998 created one of the world's largest financial services groups which now has over Ł120bn of assets under management. Some Ł45 billion is managed from London, of which about 60% is in equities, 33% in fixed interest with the remainder in property and cash.
The Morley name is one with which CGU has had excellent performance and commercial success in winning new business in the external pension fund market. Morley Fund Management's objective is to achieve performance with control: above-average returns achieved with below-average risk.
Bob Scott, Chief Executive of CGU plc, comments: "Morley Fund Management's excellent performance across a wide range of funds is underpinned by a disciplined, low-risk investment process. This, combined with the high quality of our staff and our standards of service, has been winning important segregated pension fund mandates at an impressive rate. With the CGU Group's global resources behind it, Morley Fund Management now has the investment resources, customer-led culture and expertise across all major markets and asset classes to develop as a leading international asset management organisation."
Notes to Editors
Outline of Morley Fund Management - a member of the CGU Group
Head office: London, UK (1 Poultry, London EC2R 8EJ)
Representative: Alan Clifton, Managing Director
Morley Fund Management is the London-based asset management business of CGU plc. In July 1998 the investment teams of Commercial Union Investment Management Limited, GA Investment Management Services Limited and General Accident Managed Pension Funds Limited were merged following the merger of the Commercial Union and General Accident groups. As the new business identity of the three companies, Morley Fund Management manages external pension funds, institutional investment funds and mutual funds as well as insurance assets for the CGU Group.
For regulatory and legal reasons Commercial Union Investment Management Limited and GA Investment Management Services Limited remain as IMRO regulated companies, and General Accident Managed Pension Funds Limited remains as both IMRO and PIA regulated for the time being.
Key Facts
- Ł45 billion is managed from London of which about 60% is in equities, 33% in fixed interest and the remainder in property and cash.
- Over 300 clients.
- In excess of 300 staff of whom 80 are directly involved in managing assets.
- Over Ł6 billion institutional pension funds under management.
Key objective
To build a global asset management organisation able to compete successfully for the largest, most demanding and sophisticated clients.
Key attributes
- a consistent, well understood and articulated investment process
- a superior investment performance record which meets our clients' expectations
- a low risk approach to investment
- the highest standards of integrity and ethical behaviour
- well trained, motivated and committed staff
- expertise in all principal asset markets
- accurate, reliable and cost efficient processing and transaction support systems
Investment philosophy
Morley Fund Management's objective is to achieve performance with control: above-average returns achieved with below-average risk.
Four key principles underpin this:
- Top down. A clear strategy at all levels from asset allocation to stock selection, derived from thorough consideration of economic factors and investment themes.
- Growth. We generally favour "growth" rather than "value" stocks - although with a degree of pragmatism in changing market conditions.
- Collegiate. Managers work within and as part of a team. In this way we encourage flair, skill and commitment while ensuring the exchange of ideas and information and maintaining overall management control.
- Risk control. We use a wide variety of risk control methods at all stages of the investment process. These encompass asset allocation, sector selection and stock selection decisions. As a result we have an excellent track record which has been achieved without undue risk.
Performance
Morley Fund Management: Institutional Segregated Balanced Pension Funds Median vs CAPS Median (Total Assets)
| To 31 December 1998 | 1 year | 2 year | 5 years |
| %pa | %pa | %pa | |
| Morley Fund Management | 16.6 | 15.4 | 12.2 |
| CAPS Median | 12.4 | 12.8 | 10.5 |
| Outperformance | +4.2 | +2.6 | +1.7 |
| Decile | 1 | 1 | 1 |
Source: CAPS
Outline of CGU plc
CGU plc is the holding company resulting from the merger of Commercial Union and General Accident on 2 June 1998. The merger was first announced on 25 February 1998.
The rationale behind the merger was to create a world-scale insurance group with a strong presence in European life and savings, a major asset manager and a leading position in general insurance.
The Group has a strong market position in the UK, Continental Europe, North America, the Asia-Pacific region and a number of emerging markets. CGU plc is now one of Europe's largest insurance groups.
An international group with operations in over 60 countries, CGU plc employs approximately 20,000 people in the UK and a further 32,000 overseas.
Morley Fund Management is a business name of Commercial Union Investment Management Limited (Registered office: St Helen's, 1 Undershaft, London EC3P 3DQ), GA Investment Management Services Limited (Registered office: 1 Poultry, London EC2R 8EJ), both regulated by IMRO and General Accident Managed Pension Funds Limited (Registered office: 2 Rougier Street, York YO1 1HR) regulated by IMRO and the Personal Investment Authority. All are CGU Group Companies.