Aviva has today announced the launch of a unique new Progressive Switching Facility (Facility) on its investment and superannuation platform which makes it easy for investors to gradually invest into other asset classes and funds from a broad range of cash investments.
Aviva has today announced the launch of a unique new Progressive Switching Facility (Facility) on its investment and superannuation platform which makes it easy for investors to gradually invest into other asset classes and funds from a broad range of cash investments.
The Facility is targeted toward those investors who have accumulated cash and want to move back into the equities markets. As relative yields of other asset classes versus cash are now more attractive than even three months ago, the Facility gives investors an enhanced process for regular investing to take full advantage of dollar cost averaging.
Stuart Fechner, distribution development manager - investment product, said: "It's worth noting that in the last 20 calendar years, cash as an asset class has provided the highest return in only one year (in 1994 at 5.4%) and the lowest return on seven occasions*.
"The huge investment flow into term deposits that we've seen over the past 12 months is only one side of a two-sided decision. Another decision needs to be made as to when to re-enter the market. A potential negative of investing in cash, especially for an extended period of time, is that investors may miss out on the rebound in equities when it occurs. You may be lucky to get it right, but it's probably much easier to get it very wrong."
Investors have a choice of up to seven cash funds for their initial investment, with an automatic monthly switch into their preferred investment option(s).
The cash options for the Facility are:
- BWA Cash Management Trust
- Macquarie Master Cash Fund
- UBS Cash Fund
- UBS Protected Cash Fund
- Wide Bay Platinum CMA (Government Guaranteed)
- Wide Bay Platinum CMA (Investment Plan only)
- BT Institutional Enhanced Cash Fund (Investment Plan only)
It is a simple process. Each month a set amount is switched out of the cash fund and invested in the selected fund(s) or equities until the number of specified monthly instalments is completed. Under the Facility, clients can nominate the date(s) on which the switch(es) occur.
"In volatile times, it's important to remember basic investment strategies such as dollar-cost averaging. The new Facility enhances the ability of the adviser to easily and efficiently implement this strategy for their clients," said Mr Fechner.
*Asset classes assessed were Australian shares (S&P/ASX All Ordinaries Accumulation Index), international shares (MSCI World Gross Accumulation Index in $AUD), Australian listed property (S&P/ASX Listed Property Trust Accumulation Index), Australian fixed interest (Commonwealth Bank Bond Accumulation Index), international fixed interest (UBS Global Government Bond Index in $AUD) and cash (UBS Warburg Australian Bank Bill Index).
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Stuart Fechner is available for interview.
For more information:
Ariana Alvarenga
Public Relations
Phone: (03) 9829 8985
Mobile: 0409 187 487
Sue Voglis
Research & Public Relations Manager
Phone: (03) 9829 8057
Mobile: 0408 309 247
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