Morley Fund Management (Morley) is set to launch the Morley High Income Property Unit Trust (MHIPUT), which will be available to investors in March 2003.
Morley Fund Management (Morley) is set to launch the Morley High Income Property Unit Trust (MHIPUT), which will be available to investors in March 2003. The unit trust will be invested in a mix of direct property, property related corporate bonds and UK government gilt issues and aims to provide a gross yield of around 6% per annum.
The MHIPUT will be the latest addition to Morley's range of funds, aimed at private client investment managers, discretionary asset managers, specialist investment advisers and other wholesale investors.
Morley remains positive on the outlook for commercial property on a medium term view and sees the asset class as an important element of a diversified investment portfolio.
The MHIPUT draws on the breadth of investment expertise across two of Morley's most successful asset classes. The lead manager will be Gerardine Davies, who already manages the highly successful Norwich Property Trust (Ł658m); the bond portfolio will be managed by Morley's leading corporate bond team, headed by Paul Mingay.
Key features of the fund include:
- Easy access to the commercial property market
- Highest yielding authorised property unit trust
- Proposed portfolio model of 75% direct property, 20% bonds and 5% cash
- No gearing or complex share structure
- Estimated gross yield of 6% pa, payable quarterly
- Minimum investment of Ł10 000
- Qualifies as a charity, pension (incl. SIPP and SASS) and individual (not PEP/ISA) holding
Commenting on the launch of the fund, Alan Gadd, MD of UK Retail at Morley Fund Management, said: "The Morley High Income Property Unit Trust is targeted primarily at professional advisers who see the wisdom, especially after the experience of the last few years, of diversifying investment portfolios across a broader range of asset classes. The fund has been structured to include bonds in order to provide lower volatility and higher liquidity than other property unit trusts. This defensive mix should especially appeal to high net worth private clients, pension trustees and charities. We also anticipate that the fund will become available to investors through our links with other distributors, which is a growing aspect of Morley's retail strategy."
Gerardine Davies, Fund Manager of the Morley High Income Property Unit Trust, said: "We anticipate that property will produce total returns in the 7-8% per annum range over the next five years. Although there is a slowing of rental growth in certain sectors, the commercial market remains strong in terms of investor demand. In addition, the Fund has been positioned to invest in properties with particularly long leases, with an average lease length of about 14 years."
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For further information please contact:
Fiona Baker, Head of Corporate Communications 020 7809 8617 Morley Fund Management
Notes to editors
The value of an investment in the Morley High Income Property Unit Trust and any income from it can go down as well as up. Investors may not get back the original amount invested.
Full details of the Fund including charges can be found in the Key Features, which is available on request.
Morley Property Credentials
The property team at Morley manages in excess of Ł10 billion of UK Property assets (as at 31.12.02), making Morley one of the largest property fund managers in the UK. The team consists of over 50 investment professionals and manages a range of funds, including segregated and pooled pensions as well as a retail unit trust.
Morley Fixed Income Credentials
Morley's fixed income team employs 47 investment professionals in London, Singapore and Boston. With over Ł48bn of funds under management (as at 31.12.02), Morley is one of the leading UK based fixed interest managers. As part of this the Corporate Bond team employs 8 fund managers, who run institutional, internal and retail funds, including the Norwich Corporate Bond Fund and the Norwich Higher Income Plus Fund.
Morley Fund Management
Morley Fund Management ('Morley') is an independently managed, London based, asset management business with over Ł106 billion under management (as at 31.12.02). It actively manages a diverse range of asset classes and has investment management operations in London, Tokyo and Singapore and an associate office in Boston*.
Morley is a wholly owned subsidiary of the Aviva Group and manages both institutional and retail funds under the Morley brand. It also acts as investment manager for a range of retail investment funds, marketed in the UK by Norwich Union, and international funds marketed under the Privilege Portfolio brand.
The other funds in the Morley Retail range are the Morley UK Focus Fund, the Morley European Focus Fund, the Morley Global Themes Fund and the Morley Sustainable Futures OEIC range. Morley is also the investment manager for Norwich Union's range of retail funds, as well as a unit trust for Nationwide Building Society.
*Norwich Union Investment Management, an Aviva Group company
Further information about Morley Fund Management can be found at www.morleyfm.com
Issued by Morley Investment Services Limited.
Morley Fund Management is a business name of Morley Investment Services Limited, registered in England No. 1973412 and Morley Fund Management Limited, registered in England No. 1151805. Both are members of the Norwich Union Marketing Group, members of which are regulated by the FSA for life assurance, pensions and investments. Morley Investment Services Limited is a member of the Investment Management Association. Registered Offices: No. 1 Poultry, London EC2R 8EJ. Both are Aviva companies.
For correspondence please contact us at Morley Fund Management, PO Box 6056, Basildon SS15 5UU.