Navigator has announced the addition of the Portfolio Partners Dividend Builder to the range of investment options available through its Personal Investment Plan and Personal Retirement Plan services.
Navigator has announced the addition of the Portfolio Partners Dividend Builder to the range of investment options available through its Personal Investment Plan and Personal Retirement Plan services.
The fund is available for investment exclusively by Navigator from 19 September until 31 December 2005.
Navigator’s research manager, Stuart Fechner, said: “It’s pleasing to see a fund of this nature being made available as it’s been a gap in the market for some time.”
The fund’s primary objective is to deliver higher levels of tax effective income, relative to the S&P/ASX 200 dividend yield return, on a regular basis. The fund’s other objective is to achieve some capital appreciation in a tax efficient manner.
The fund’s strategy is to invest in a diversified portfolio of high yielding Australian shares that will grow their dividends over time, with an emphasis on securing franked income and minimising stock turnover, to keep net realised capital gains low.
The fund is managed by Glenn Hart, head of equities at Portfolio Partners and draws on the research capabilities of the firm’s broader Australian equities team.
Glenn Hart said: “The trust differs from other trusts in that our primary objective is to focus on income producing investments. Our research of the US and Australian sharemarkets over the last 100 years highlighted that company dividend yields form a significant component of total sharemarket returns. In fact, the Australian sharemarket had a total return of 10.97% pa, including a yield of 4.91% pa, for the period 1900 to 2000.”
Mr Hart added: “Dividend Builder will suit those investors who want to participate in companies providing dividend growth. The fund also aims to act as a good income stabilizer in investment portfolios, especially during choppy or uncertain markets."
The life expectancy age has increased as the years have passed, with the average male upon reaching retirement age 65 now expected to live until 82 years of age and the average female until 86 years of age. This compares with 61 years of age and 78 years of age respectively 20 years ago in 1985.[1]
“The fact is we’re now living longer”, said Mr Fechner.
“Many investors may feel that once they reach age 65 for example that they need be more conservative with their investments, be wary of equities and to focus on more conservative income based investments”, added Mr Fechner.
“The fact is, most investors either retired or approaching retirement have around 15 to 20 years of investment ahead of them. Such a timeframe makes equities appropriate for inclusion into a portfolio and especially an equities strategy with the underlying objective of Portfolio Partners Dividend Builder. There are very few equity funds with this type of investment strategy available”, Mr Fechner said.
Navigator offers a choice of over 180 different investment options. The Dividend Builder is available exclusively via Navigator until 31 December 2005.
-end-
[1] Source: Department of Family and Community Services
Glenn Hart is available for interview on 03 9220 0328
Stuart Fechner is available for interview on 0407 839 080
For further information please contact:
Bernadette Collins
Manager Public Affairs
Phone: (03) 9829 8818
Notes to editors:
- Aviva Australia is a group of two specialist financial services companies: Navigator and Norwich Union Life Australia Ltd. Portfolio Partners is the Australian funds management arm of Aviva plc. Through these companies we provide products and services in the areas of wealth creation and wealth protection for more than 300,000 customers throughout Australia.
- Globally, Aviva Australia is part of Aviva plc, the world’s sixth 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$78.6 billion, and more than A$645 billion of assets under management (as at 7July 2005). The group has more than 60,000 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. Aviva does not receive any remuneration in relation to the provision of information available from this press release which is of a general nature only.