Australia: 17% per annum return for five years

Portfolio Partners’ High Growth Shares Trust has turned five and is celebrating returns of 17.4 per cent per annum¹ since its inception on 14 July 1997.

According to Managing Director of Portfolio Partners Craig Bingham, the High Growth Shares Trust has a track record of strong performance.

“In 2001, the trust was named ‘Most Innovative Product of the Year’ by Personal Investor magazine – recognising it as one of the most innovative and best performing funds on the market. It has clearly lived up to that reputation by delivering on what it promises.”

Mr Bingham said the trust’s success was testament to the commitment portfolio manager Ian Lang and deputy portfolio manager Richard Dixon applied to the task of managing clients' hard-earned money.

“Between them, Ian and Richard have close to 40 years in the funds management industry and a thorough understanding of the dynamics of the Australian sharemarket. As a team, they have a passion for using their skills to generate unique insights into the market and to identify significant opportunities to enhance investment returns.”

The High Growth Shares Trust is a high alpha Australian shares product that is designed to provide a performance ‘kicker’ via the use of short selling and active trading techniques.

While traditional shares funds are limited to buying stocks that analysts identify as having the potential to outperform the market and not buying stocks they expect to underperform, the High Growth Shares Trust is able to short sell stocks Portfolio Partners identifies as potential underpeformers. Funds obtained through short selling are usually used to purchase additional shares Portfolio Partners analysts expect to outperform – adding further value for investors.

Mr Bingham said the High Growth Shares Trust was an excellent example of a product that had been developed to meet market demand.

“Portfolio Partners has led the market in providing investors with a product of this kind,” he said. “It was launched in 1997 in response to large corporate investors demanding an Australian shares product with innovative features. As part of our move into the retail market, it has been available to retail investors for around two and a half years. The level of inflows and the recognition the trust is now receiving indicate that the message about the value of the product is getting out to the retail market.”

The High Growth Shares Trust is designed for investors with an investment horizon of at least five years who are willing to ride out potential short-term fluctuations in the unit price.

“Because it generates high levels of distributed income each year as a result of its active trading, the trust is highly suited to investors who can take advantage of low tax environments such as superannuation accumulators, retirees on an allocated pension, and non-working partners,” Mr Bingham added.

He said the trust was ideally used as part of a ‘satellite’ strategy. This involved complementing a core portfolio with a range of other investment products that exhibited different return characteristics from the core portfolio to diversify a portfolio without introducing excessive risk.

Richard Dixon is available for interview on (03) 9220 0355.

¹Based upon annualised gross return, exit to exit prices assuming reinvestment of income. For the period to 30/6/02.

For further information, please contact:

Simon Morgan
Group General Manager Public Affairs
(03) 9829 8892
0407 966 632

Note to editors:

• Norwich Union Australia is a group of three specialist financial services companies: Navigator, Norwich Union Life and Portfolio Partners. Through these companies we provide products and services in the areas of wealth creation, wealth management and wealth protection f
• or more than 300,000 customers throughout Australia.
• Globally, Norwich Union 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's principal business activities are long-term savings, funds management and general insurance. It has a market capitalisation of approximately A$27 billion at 21/06/02, worldwide premium and investment sales of more than A$74.8 billion from ongoing business and more than A$556 billion in assets under management. The group has 64,000 employees and more than 25 million customers.
• Norwich Union Australia has a sister company, CGU Insurance Ltd, a top 5 general insurance business, which operates independently in Australia.
• The above information is of a general nature and has been prepared without taking account of any particular person’s individual investment objectives, financial situation or particular investment needs. Before making an investment decision, a prospective investor should consider the appropriateness of the information, having regard to their objectives, financial situation and needs. We recommend they consult with a financial adviser, who can help them to determine how best to achieve their financial goals and whether investing in a trust is appropriate for them. Except where not required by law, investment into the Portfolio Partners investment trusts will only be made upon receipt of a completed application form from a current prospectus, which has been lodged with ASIC, a copy of which can be obtained from Portfolio Partners. Management fees and entry fees, where applicable, will apply. Past performance does not guarantee future performance.