Australia: Navigator increases investment options

Navigator today increased the range of investment options available via its Personal Investment Plan and Personal Retirement Plan services.

Funds added to the Navigator fund list are:

• Barclays Managed Investment Funds – Australian Share Fund
• Perpetual's Wholesale Concentrated Equity Fund
• PM Capital Australian Opportunity Fund
• PM Capital Absolute Performance Fund
• Advance Wholesale Australian Smaller Companies Fund
• Challenger Smaller Companies Fund – IDPS
• Macquarie True Index Global Bond Fund
• Vanguard International Credit Securities Index Fund (Hedged)
• Merrill Lynch Combined Property Income Fund – Class D units

Funds removed from the Navigator fund list are:

• BT Wholesale Property Securities Fund
• Portfolio Partners Emerging Shares Trust

Stuart Fechner, Navigator research manager, said that funds were both added and removed from the Navigator fund list, but that the overall outcome was a strong net increase in fund choice. "The primary objective when making changes to the Navigator fund list is to ensure that adequate choice both of quality managers and funds are provided for financial advisers," he said.

"The process of assessing which managers and funds to add to the Navigator fund list incorporates a detailed questionnaire that covers assessment at both a manager and fund level. It is not only important that we identify quality funds, but also fund managers that can comply with our desired level of service standards," Mr Fechner said.

Ensuring that suitable choice is provided across a range of different asset classes, along with a desire to listen to feedback from advisers, has led to a broad range of different investment options being added.

"The addition of two small company funds – the Advance Wholesale Australian Smaller Companies Fund and the Challenger Smaller Companies Fund – was essential to ensure adequate choice and diversification within this investment category," Mr Fechner observed.

"The small companies sector came into the spotlight after several fund managers had closed their small cap offerings after they had reached, or were about to reach, the desired fund size," he explained. "The small cap sector of the market has been a strong performer with many funds attracting a high level of inflows. This has seen several managers close their small cap funds once the desired level of funds under management was reached.

"Barclays and PM Capital were two new managers added to the list, with the latter attracting interest due to their ability to sell short stocks which has assisted in adding value," Mr Fechner added.

"Portfolio Partners' Emerging Shares Trust has delivered strong returns over the past year and, as a result, has attracted strong support from investors. To be able to continue to provide good returns for investors in the fund, Portfolio Partners intend to close it at an appropriate fund size in the new year to ensure they don’t compromise this objective.

"The BT Property Securities Fund is being removed due to the duplication with the previously named Sagitta Rothschild Property Wholesale Trust now that BT has taken the management of the fund back in-house from Principal," Mr Fechner said.

In a further enhancement to the Navigator fund list, a new property investment category has been added. There are three funds classified within the new investment category titled "Property – Diversified".

Mr Fechner said, "It is important to ensure accurate classification of funds so that proper reflection of the funds underlying investment strategy is provided for investors. 'Property – Diversified' includes funds that offer investors a diversified mix of both listed and direct property."

Mr Fechner said that one new fund to the list has been added to this category, with two other funds being re-classified from the Australian Property investment category. "The Merrill Lynch Combined Property Income Fund is a new addition to the list, with both the HSBC Strategy Property Wholesale Fund and the Australian Unity Wholesale Property Income Fund moving across from the Australian Property category," he said.

-ends-

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 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 is the world's seventh-largest insurance group and the biggest in the UK. It 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$68.32 billion, and more than A$488 billion of assets under management (as at 1 July 2003). The group has more than 59,000 employees and 25 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 is not, nor is it intended to be, comprehensive or a substitute for professional advice on specific circumstances. The securities advice or 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. Before making an investment decision on the basis of the advice above, a prospective investor needs to consider, with or without the assistance of a professional adviser whether the advice is appropriate in the light of their particular investment needs, objectives and financial circumstances.
• 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. Investors should consider the PDS before making an investment decision or deciding to continue to hold a product