Norwich Union is to launch a range of manager of managers funds. The new funds will give Norwich Union’s customers access to some of the best investment managers in the world.
Norwich Union is to launch a range of manager of managers funds. The new funds will give Norwich Union’s customers access to some of the best investment managers in the world.
Norwich Union has appointed Aon Asset Management to select the underlying managers, track their performance and change them when necessary. Aon was selected following a rigorous due diligence process conducted by Norwich Union and Morley Fund Management. Morley will be responsible for determining asset allocation across the range of funds.
The Norwich Union manager of managers funds range will comprise Income, Cautious, Balanced and Growth funds, and will be available across Norwich Union’s OEIC, ISA and life products. The funds will be launched on 23 May 2005 and be available through IFAs and Norwich Union’s partnerships.
Simon Quick, director of product strategy at Norwich Union, said: "Launching manager of managers funds is a key part of our strategy to continually evolve and enhance our investment products and bring some of the world’s best investment managers within easy reach of investors. Norwich Union’s funds will appeal to customers who are looking for durable, one-stop investments that hold a wide range of assets backed up by strong research and monitoring teams.
"Monitoring and managing an investment portfolio is an ongoing process that can prove difficult and time consuming for investors, which is why the partnership of Aon and Morley is so valuable. Both companies have an enormous amount of expertise and their involvement means we have the best people and processes to find, appoint, monitor and switch investment managers.
Adrian Swales, managing director of Aon Asset Management, said: "Having established a strong presence in the pensions market with our manager of managers services, Norwich Union has recognised how our expertise could benefit existing and new life and investment customers through our management of their funds. Our partnership means that individuals and smaller business clients can now access the same investment opportunities that were previously only available to the larger corporates."
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Press office contacts:
David Gwyer 01904 452828 Out of hours 07800 699508
Angus Duncan (Aon) 020 7086 8012
Fiona Baker (Morley Fund Management) 020 7809 8617
Notes to editors:
Product information
Manager of managers funds offer a different way of investing to the traditional method of investing in one fund with one manager. The key to manager of manager funds is that money in the fund is invested with several managers rather than just one. They give investors access to a range of managers investing in a wide range of assets around the world.
The Norwich Union manager of managers funds range will be available through ISAs and ISA and PEP transfers. Minimum monthly contributions will be Ł100. Minimum lump-sum contributions will be Ł3,000 for ISAs and PEPs and Ł5,000 for OEICS.
Charges
| Initial | AMC | TER | |
| OEIC Income fund: | 4.25% | 1.6% | 1.685% |
| OEIC Cautious fund: | 4.25% | 1.65% | 1.755% |
| OEIC Balanced fund: | 5% | 1.7% | 1.845% |
| OEIC Growth: | 5% | 1.8% | 2% |
Charges through Portfolio life bond
Two charging structures are available for investments in Portfolio - level and step down option. Additional charges are made for investments in the manager of managers funds: income fund (0.55%), cautious (0.60%), balanced (0.65%), growth (0.75%).
Asset mix for Oeic funds
Norwich Manager of Manager Income Fund
This funds aims to achieve a regular & growing level of income with prospects for long-term capital appreciation. The aim of the fund is to deliver a yield 120% or over of the FT All Share Index. It will have a diversified investment in UK equities and fixed interest securities. Allocation to fixed interest securities, equities and cash will vary over time.(indicative, for information)
UK equity (71.50%), UK corporate bonds (26.40%), UK cash (2.10%).
Norwich Manager of Manager Cautious Fund
This fund aims to achieve capital growth over the medium to long term.
It will have a diversified investment in equities and fixed interest securities. Allocation to fixed interest securities, equities and cash will vary over time. At least 50% of total assets will be in sterling/euro denominated investments.
Asset allocation (indicative, for information)
UK equity (33.33%), European equity (5%), US equity (5%), Japan equity (1%), Asian and Pacific equity (3%), emerging markets (1%), global bonds (4.65%), UK govt bonds (13.33%), UK corporate bonds (16.66%), UK cash (5%)
Norwich Manager of Manager Balanced Fund
Investment objective: To achieve long term capital growth.
Investment policy: Diversified investment within and across global securities markets. Allocations to bonds, equities and cash will vary over time. At least 10% of investments held will be non-UK equities and at least 50% of total assets will be sterling/euro denominated.
Asset allocation (indicative, for information)
UK equity (47%), European equity (10%), US equity (8%), Japan equity (1%), Asian and Pacific equity (7%), emerging markets (4%), global bonds (2%), UK Govt bonds (8%), UK corporate bonds (8%), UK cash (5%).
Norwich Manager of Manager Growth Fund
Investment objective: To achieve long term capital growth.
Investment policy: Investment in a diversified portfolio of global equities. Allocations to specific global markets will vary over time. While the fund manager may hold non-equity assets, the overall policy is for up to 100% to be invested in equities at any given time.
Asset allocation (indicative, for information)
UK equity (57.50%), European equity (9%), US equity (7.50%), Japan equity (1%), Asian and Pacific equity (15%), emerging markets (5%), UK cash (5%).
Asset splits in life funds include property
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 in the UK.
Norwich Union has strategic alliances with building societies and other leading UK brand names including Tesco Personal Finance and The Royal Bank of Scotland Group. Norwich Union’s news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media.