Norwich Union’s UK Special Situations fund has been awarded an AA (New) fund management rating by Standard & Poor’s Fund Services.
Norwich Union’s UK Special Situations fund has been awarded an AA (New) fund management rating by Standard & Poor’s Fund Services.
The Ł200m fund will be available from 22 May 2006 and has been designed exclusively for Norwich Union. It will be jointly managed by Richard Buxton, manager of Schroder UK Alpha Plus Fund, and Andy Brough, manager of Schroder UK Mid 250 Fund.
Neil Davies, director of investments for Norwich Union, said: “This is terrific news. Standard & Poor’s is a well respected agency and it is a tremendous accolade for a fund to be given an AA rating on launch. It shows how highly regarded Richard Buxton and Andy Brough are. Andy Brough’s funds are currently rated AAA and Richard Buxton’s UK Alpha Plus fund has an AA rating. The two managers have successfully outperformed with previous mandates, and this is the reason Standard & Poor’s Fund Services has awarded the fund an AA (New) rating.”
Richard Buxton, manager of Norwich UK Special Situations Fund, said: "We do not expect the type of returns from equities that we have seen over the last three years. The real investment opportunities are harder to find. An index-unconstrained approach enables us to capitalise on the best investment opportunities across a much broader spectrum of companies with the aim of securing attractive returns for investors in the long term."
The fund will appeal to more experienced investors who are prepared to take higher risks in their search for higher returns. The launch is part of Norwich Union’s drive to develop its investment range and increase sales of collective investments. In the past 12 months it has:
- Launched the Norwich UK Growth and Value fund, managed by JPMorgan Asset Management
- Appointed James Dalby as head of fund propositions
- Added three fund of funds to its ISA range
- Appointed John Clougherty as director of collective investments sales
- Launched four manager of managers funds
-ends-
Press office contacts:
David Gwyer 01904 452828 Out of hours 07800 699508
Louise Soulsby 01904 452617
Schroders press contacts:
Lucy Rae 020 7658 6168
Caroline smith 0207658 3365
Standard & Poor’s Fund Services media contact:
Angeliki Kallipoliti 020 7176 8176
Notes to editors
About the Norwich UK Special Situations fund
Fund size: Ł200m. Approximate number of holdings at launch: 50 stocks. IMA sector: UK All Companies. Benchmark: FTSE All Share index. Initial charge: 5%. Fund charges AMC: 1.5%. TER: 1.8%. Standard initial commission: 3%. Standard renewal commission: 0.5%. Investment levels for ISA investors: lumps sums Ł500, regular monthly savings Ł50.
About the fund managers
The funds will be managed by Andy Brough, manager of the Schroder UK Mid 250 fund, and Richard Buxton, manager of Schroder UK Alpha Plus fund.
Andy Brough’s fund is 1st quartile over 1, 3 and 5 years and his fund is AAA rated by S&P and OBSR. Richard Buxton’s fund is 1st quartile over 1 and 3 years. It is AA rated by S&P, and A rated by OBSR.
About Schroders Plc
Schroders is a global asset management company with Ł122.5 ($211.0 / €178.2) billion under management as at 31 December 2005. Its clients are major financial institutions including banks and insurance companies, local and public authorities, charities, pension funds, high net worth individuals and retail investors.
Notes to editors
Norwich Union is the largest insurance services provider in the UK. It is a leading provider of life, pensions and investment products and one of the largest Financial Adviser (FA) providers. FAs provide over 70% 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 CIS 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
Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research and data. For more information, visit http://www.standardandpoors.com.
Ratings Definition: Funds rated in the AAA to A categories demonstrate to Standard & Poor's Fund Services an ability to provide above average returns over a long-term period (relative to funds in the same sector) along with a strong ability to adhere to a consistent investment process. The differentiation in the rating categories is based on quantitative factors along with Standard & Poor's assessment of the investment process and management. The rating is based on an evaluation of qualitative management, investment process, and organisation) and quantitative (historic performance, portfolio construction, and volatility) factors, which contribute to long-term performance. The rating does not address the market, credit or counterparty risk of a fund, nor a fund's suitability as a counterparty or obligor.