Throughout the recent consolidation of the platform industry, Navigator stood firm in its strategy to become the home of the independent financial adviser, according to Allan Griffiths, chief executive officer of Aviva Australia, parent company of Navigator.
Throughout the recent consolidation of the platform industry, Navigator stood firm in its strategy to become the home of the independent financial adviser, according to Allan Griffiths, chief executive officer of Aviva Australia, parent company of Navigator.
"Some time ago Navigator made a strategic decision not to pursue ownership of distribution, instead preferring to focus on providing an industry-leading platform and services to independent financial advisers," Allan said.
"And with the number of planners who are part of an independently owned dealer group increasing from 30 per cent in 2002 to almost 37 per cent in 2003 alone, Navigator is well positioned to service this growing independent market," he said.
As a key differentiator, Allan points to the Assirt Market Share Report for the September quarter, which ranks Navigator as the 5th largest discretionary master trust with more than $9 billion funds under administration. "As the top four master trusts are managed by large financial institutions who own their own distribution channels, Navigator is clearly the leading independent platform," he said.
He adds that growth for Navigator is set to continue. This is particularly the case if the industry fragments, which Allan said is likely. "Despite the ongoing market rationalisation we believe that in most industries any period of consolidation is followed by a process of fragmentation," Allan said.
"As transparency levels increase, in line with both the growing sophistication of investors and the demands that FSRA brings to bear on the industry, we believe that we will start to see advisers looking for a greater level of independence," he said.
In addition to the strategy of focussing on independent financial advisers, Navigator has been reviewing the market place for key strategic alliance partners to further expand its existing distribution capabilities.
"We are also actively pursuing providers of platforms that are looking to outsource non core business capability to generate efficiencies, cost savings and provide increased product functionality," Allan said.
"From the discussions we’ve been having with potential alliance partners, we know that the independence of the Navigator platform and its high level of functionality are the key motivations for building a relationship with us. Our independence means there are none of the potential `channel` conflicts that can occur, which makes Navigator a good compliment to most institutions," he said.
"In the past six months we have added a range of new services to Navigator such as our adviser desktop n-link and our dealer services offering n-able, which support financial advisers and assist them to grow their business whilst maintaining their independence."
"According to last year’s Money Management Top 100 Dealer Groups survey, the number of planners who are part of an independently owned dealer group in the top 100 is increasing – from 30% in 2002 to almost 37% in 2003 alone. As the ‘home of the independents’, it follows that Navigator is well positioned to take advantage of this growth in the independent market," Allan said.
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Notes to editors:
- Aviva Australia is a group of two specialist financial services companies: Navigator and Norwich Union Life Australia Ltd. Portfolio Partners, the Australian funds management arm of Aviva plc, is a sister company. Through these companies we provide products and services in the areas of wealth creation, wealth management and wealth protection for more than 300,000 customers throughout Australia.
- Globally, Aviva Australia is part of Aviva plc, the world’s seventh largest insurance group, the largest insurer in the UK and one of the top five life companies in Europe. Aviva was formed in May 2000 through the global merger of CGU plc and Norwich Union plc.
- Aviva is the world’s seventh-largest insurance group and the biggest in the UK. It is a leading provider of life and pensions products to Europe and has substantial businesses elsewhere around the world. Its main activities are long-term savings, fund management and general insurance. It has premium income and investment sales from continuing operations of A$68.32 billion, and more than A$488 billion of assets under management (as at 1 July 2003). The group has more than 59,000 employees and 25 million customers worldwide.
- The information in this document reflects Navigator Australia Limited's ('Navigator’) understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. The information is not, nor is it intended to be, comprehensive or a substitute for professional advice on specific circumstances. The securities advice or information given in this document is of a general nature and has not taken into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision on the basis of the advice above, a prospective investor needs to consider, with or without the assistance of a professional adviser whether the advice is appropriate in the light of their particular investment needs, objectives and financial circumstances.
- Applications to invest in a financial product issued by Navigator or any of its related entities must be made by completing the application form attached to the applicable Product Disclosure Statement ("PDS"). A PDS is available from Navigator or your financial adviser. Investors should consider the PDS before making an investment decision or deciding to continue to hold a product.