Recent volatile investment markets have seen traditional high performing Growth Funds disappoint investors with losses of between six and 10% in the past year.
Recent volatile investment markets have seen traditional high performing Growth Funds disappoint investors with losses of between six and 10% in the past year1.
This has naturally led to many investors taking considerable interest in the level of return provided on their investments, and demanding alternative strategies from their financial advisers. In recognition of this, Navigator, Australia’s leading master trust, now offers a range of Hybrid and High Yield funds, giving investors the opportunity to invest in funds with a focus and objective of delivering a reasonable level of yield and income to investors.
In terms of their risk profile, Hybrid based investments are positioned between debt and equity on the risk/return spectrum. The Australian Stock Exchange says "the term hybrid is given to a class of securities with the characteristics of both an interest bearing security and equity (ie both bonds and shares) 2".
Investors in Navigator now have access to the UBS Hybrid Income Fund, Schroder Wholesale Hybrid Securities Fund and Challenger High Yield Fund.
Stuart Fechner, Navigator’s research manager says many people are now questioning the level of risk or volatility they are willing to tolerate.
"Investors are finding the growth strategy they may have been following for the past few years may have failed them and are looking for a mix of investments with a lower level risk," said Stuart.
Navigator is one of the few platform providers offering Hybrid and High Yield Funds to investors.
"In time, growth funds will of course improve but many people, particularly those over 65, are not willing or able to wait. This is where you may consider investing in a Hybrid or High Yield Fund. You are still investing in a fund with some growth potential, however this is balanced with the fund having an increased focus on providing a strong and consistent level of income."
Navigator also caters for people looking to invest their funds more traditionally.
"There are many conservative investors who aren’t willing to take many risks with their money, especially those in or approaching retirement who are looking to use their savings in the near future as a primary source of income.
"Navigator research has identified that many investors are still moving towards the property market, despite the recent publicity of an imminent ‘bubble burst’ in this sector. Incredibly, some investors have realised losses at the bottom of the equity market cycle and then moved to property which is arguably at or close to the top of the property cycle."
An independent financial adviser can assist investors interested in finding out more about Navigator.
-ends-
Stuart Fechner is available for interview.
For further information, please contact:
Simon Morgan, Group General Manager
Public Affairs
(03) 9829 8892
0407 966 632
1Provided by Navigator Research – based on Diversified Growth Funds performance published in Navigator News May/June 2003.
2Australian Stock Exchange, What are hybrid securities?, www.asx.com.au.
Note to editors:
- Norwich Union Australia is a group of two specialist financial services companies; Navigator and Norwich Union Life. Portfolio Partners, the Australian funds management arm of Aviva plc, is a sister company to Norwich Union. 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.
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