Morley develops core/satellite hedge approach

UK – Morley Fund Management is to implement a new core, long overlay and active satellite approach in its management of the £57bn (€90bn) Norwich Union with profits insurance funds.

The new structure develops from a core satellite strategy that was adopted for the Norwich Union Life fund last year. The concept is expected to be further extended to all life funds within the CGNU group, Morley’s parent company.

Says Gerald Holtham, Morley’s chief investment officer :”This structure combines the risk limitation of a passive core, with the added performance of hedge fund techniques without the leverage.”