Morley Fund Management, one of the UK’s largest fund managers, today announced the one-year anniversary of its Luxembourg-based fund of hedge funds, the Aviva Alternative Funds - Alpha Optimum. During a period of volatility for long-only investors and the wider hedge fund industry, the fund has just reported its twelfth consecutive positive return for investors.
Aviva Alternative Funds - Alpha Optimum Delivers Twelfth Consecutive Month of Positive Returns
Morley Fund Management, one of the UK’s largest fund managers, today announced the one-year anniversary of its Luxembourg-based fund of hedge funds, the Aviva Alternative Funds - Alpha Optimum. During a period of volatility for long-only investors and the wider hedge fund industry, the fund has just reported its twelfth consecutive positive return for investors.
Designed to produce steady returns that are independent of the movements of equity or fixed income markets, the fund has a zero beta*, low volatility and has produced returns of 7.8%** [in euros]. Aviva Alternative Funds - Alpha Optimum currently has funds under management of €134.96 million, attracting both institutional and private investment.
Neil Smith, head of alternative investment at Morley Fund Management, said: "Aviva Alternative Funds - Alpha Optimum has delivered what we fully expected of it – a truly diversified market neutral fund that is delivering performance at a time when many other fund of hedge funds are delivering very modest or even negative returns."
Total hedge fund assets in the UK have increased substantially in the last year, with institutional investors replacing high net worth individuals as the main driver of growth. Concerned by the performance of global equities during the last six years, institutional investors, particularly pension funds, have looked to diversify risk and enhance returns by investing in alternative assets.
Neil Smith added: "Investment in a broad array of hedge fund strategies means minimising the overall fund beta relative to the equity and bond markets. Our fund focuses on high quality and repeatable alpha sources such as the exploitation of market inefficiencies, under-analysed segments of the market and arbitrage opportunities."
*Beta is a measure of volatility i.e. the tendency of a security's returns to respond to swings in the market.
**Returns are based on Net Asset Value prices (euros). Source: Standard & Poor’s
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For further information please contact:
Fiona Baker, Head of Corporate Comms 020 7809 8617
Morley Fund Management 07736 883832
Notes to Editors
Morley Fund Management
- Morley Fund Management (‘Morley’) is an independently managed, London-based, asset management business with over Ł111 billion* under management (as at 31.03.04). It actively manages a diverse range of asset classes and employs in the region of 900 staff worldwide based in London, 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 Aviva Funds brand.
*Not including mortgage assets
**Morley Fund Management International Limited, an Aviva company
Awards
- Pensions Management Provider Awards 2003 – Best Property Fund Manager
- Fund Manager of the Year - Pensions Week Awards 2002
- Specialist Manager of the Year - UK Pensions Awards 2002
- Insurance Fund Manager of the Year (awarded to Norwich Union) - Standard and Poor’s 2002
- Sustainable and Ethical Investment and Asset Management Award - Liveable City Awards 2002
Further information about Morley Fund Management can be found at www.morleyfm.com