Navigator today announced it will add the award winning Centro Direct Property Fund to its Personal Investment and Personal Retirement Plans in November.
Navigator today announced it will add the award winning Centro Direct Property Fund to its Personal Investment and Personal Retirement Plans in November.
The Centro Direct Property Fund was recently awarded the FPD Savills Joe Curlewis Australian Property Trust Industry Award for financial performance and innovation by the Australian Property Institute.
Tim Cobb, Navigator’s general manager products, said: "This is an important addition to the range of property funds as it creates additional ways for investors to diversify and enhance the yield of their portfolios.
"It is also more attractive than traditional direct property funds and syndicates, since its exposure is diversified across a large number of properties and has a $50 million liquidity facility from the Centro Properties Group. Lack of diversification and lower liquidity have been problems with other direct property investments."
However, Tim cautions that despite the liquidity facility, investors should be aware redemptions could be suspended in exceptional circumstances.
The Centro Direct Property Fund is a wholesale fund of funds that primarily invests in retail property syndicates managed by Centro MCS. It may also allocate up to 25% of the fund in international property investments and may hold cash and listed property trusts. Centro has indicated the fund’s structure is such that in excess of 60% of the distributions are expected to be tax advantaged.
The Fund has exposure to more than 115 retail properties through its syndicate investments, including:
- Centro Bankstown and Centro Roselands in New South Wales
- Centro David Jones and Maddington Square Centre in Western Australia
- Centro Surfers Paradise and Indooroopilly Central in Queensland
- Centro The Glen in Victoria
"The Fund has performed well in the two years since inception to 30 June 2004 with a return of 12.6% per annum*, outperforming the Mercer Unlisted Property Funds Index."
"The listed property trust sector is changing and in response to these changes you would expect investors to start investing differently in property. The consolidation and significant Net Tangible Asset premium within the listed property trust sector of the Australian share market is likely to see investors diversifying their property exposure beyond Australian listed property funds into direct property funds," said Tim.
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*Figures assume return is net of management fees and before tax. Fund has returned on average 12.6% a year since inception in July 2002. Past performance is not a reliable indication of future performance.
For further information, please contact:
Simon Morgan, Group General Manager, Public Affairs
(03) 9829 8892
0407 966 632
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 fifth 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 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$78 billion, and more than A$624 billion of assets under management (as at 1 July 2004). The group has more than 56,000 employees and 30 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 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 and it is not a substitute for professional advice. 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. Before making an investment decision on the basis of the information above, a prospective investor needs to consider, with or without the assistance of a professional adviser whether the information is appropriate in the light of their particular investment needs, objectives and financial circumstances.