Norwich Union’s Balanced Distribution fund marks its third anniversary in July 2006 with first-quartile performance since launch.
Norwich Union’s Balanced Distribution fund marks its third anniversary in July 2006 with first-quartile performance since launch.
The Ł346m fund’s objective is to provide income with prospect for long-term growth by investing in a wide range of share, bonds and property.
Since its launch in July 2003, the fund has*:
- Achieved first quartile ratings in the ABI UK Life Funds – Distribution-Life sector since launch
- Achieved 37.1% growth (net of tax/gross of charges) from launch until 31.5.06
- Rated second out of 60 funds in sector between 31.5.05 and 31.05.06
*Past performance is not a guide to future performance.
Neil Davies, director of investment at Norwich Union, said: “This good news for our customers and demonstrates our commitment to generating good returns for them. The Norwich Union Balanced Distribution fund has performed well since its launch in July 2003 with overall total returns exceeding 35%. It is also less volatile compared to our competitors’ balanced funds because it invests in a wide spread of assets. It will appeal to cautious investors who are prepared to take more risk for potential returns that are better than those offered by a bank or building society account.”
The Balanced Distribution fund is managed by Steve Cleal of Morley Fund Management. Its target asset mix is: 45% equities, 30% property and 25% bonds.
Steve Cleal, manager of the Norwich Union Balanced Distribution Fund, said the fund benefits from a combination of property, bonds, high yield equities and tactical asset allocation.
He said: "Bonds have offered poor value to investors over recent years and, as a result, the fund has had a lower weighting in fixed interest than other funds in the sector. The prospects for property and equities have been far more promising and high weightings have been maintained in these asset classes. These positions have contributed to the strong performance of the fund since launch.”
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Press office contacts:
David Gwyer 01904 452828 Out of hours 07800 699508
Louise Soulsby 01904 452617
Notes to editors
About the Norwich Union Balanced Distribution fund
The Balanced Distribution Fund was launched in July 2003 and is available through Portfolio, which is Norwich Union’s investment bond. The aim of the fund is to provide a good level of rising income with the potential for capital growth. To achieve this, it invests in a mix of UK equities, UK corporate bonds and property. It will appeal to investors who want a diversified portfolio to spread risk, generate income and offer the potential of capital growth.
The Balanced Distribution Fund offers:
- Potential for capital growth in addition to a regular income
- Choice of income options – distribution option, regular withdrawals and adding the income to your bond for growth
- Flexible income payment – monthly, quarterly, four-monthly, half-yearly or yearly
About the manager
The Norwich Union Balanced Distribution fund is managed by Steve Cleal of Morley Fund Management. He has been responsible for the fund since its launch and is a member of the Asset Allocation Committee and head of the balanced funds team at Morley.
About Norwich Union
Norwich Union is the UK’s largest insurer. 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 is the UK’s largest general insurer with a market share of around 14%, with a focus on insurance for individuals and small businesses. Norwich Union’s news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media
About Morley Fund Management
Morley Fund Management Limited is the UK-based asset management business of Aviva plc. Firms within the Morley group of companies manage Ł156bn from offices around the world as at 30 April 2006.
Morley 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 under the Norwich Union brand, and international funds marketed under the Aviva Funds brand.