Australia: Navigator puts safety first

Navigator recently announced the addition of a new fund designed to help shelter investors from the downside of turbulent markets.

Called the Safety First Performance Fund (the "Fund"), this is the first time that Navigator has added a capital protected fund to the range of funds available via the Navigator platform.

Backed by global retail and investment bank Société Générale as Capital Guarantor, the Fund is offered exclusively to Navigator and Premium Choice investors, however it is open for only a limited period of six weeks.

This offer will provide investors an opportunity to get back into equity investments from cash and offers the dual attraction of down-side risk protection against capital loss within a fund that offers leading Australian equity investments.

"The potential for higher returns than the traditionally safe-but-conservative performance of cash, along with the peace-of-mind that capital protection brings, are likely to be the two big winners for investors", said Harry Krkalo, Associate Director, Structured Products with Société Générale.

"At the retail level, investors over the last year or so may be disillusioned with what the standard fund manager can provide, they are looking for a product that gives them an edge over run-of-the-mill managed funds that may be out there. We feel that Safety First offers an important point of difference for these investors," Harry said.

The Safety First Performance Fund provides investors with a 100% guarantee on their initial funds invested as at the guaranteed maturity date (six years from initial investment). Participation in any growth – including the effect of dividends – is through a participation rate. The participation rate will be set at the end of the offer period and is estimated to be between 100 – 110% of the average of quarterly recorded performance in the growth of the four underlying funds:

• 25% UBS Australian Share Fund
• 25% ING Wholesale Australian Share Trust
• 25% Perpetual’s Wholesale Australian Fund
• 25% Merrill Lynch Wholesale Imputation Fund

Speaking about the Safety First Performance Fund, Navigator Research Manager, Stuart Fechner reiterated this point of difference for investors looking to balance the need for returns with the security of down-side protection from capital loss over the medium to long term.

"This is a six year, fixed term investment, targeting investors who are seeking the safety of a guaranteed sum, but want to remain open to the level of growth that equity markets can offer," he said.

"The fund is designed as a medium to long term investment that would be well-suited to investors with a specific investment goal in mind, such as a university fund for their kids, or as part of a supplementary retirement savings plan," said Stuart.

Performance of the fund is calculated on a quarterly basis. The `basket value` for the performance of the four underlying funds is observed – any negative performance values are `zeroed out`, while only the positive fund performances are recorded. So for each quarter a `locked-in` profit figure is calculated for the life of the investment. At the time of investment maturity the guaranteed investment is paid plus the average of the quarterly performance values multiplied by the participation rate.

"We’re pleased to be offering a capital protected fund on the Navigator platform for the first time. The Safety First Performance Fund is a good compliment to the range of funds we already have on offer to investors via the Navigator platform, offering a new investment choice for investors interested in guaranteed capital return with the possible benefit from growth in Australian equities," Stuart said.

The offer is open for a six-week period until 10 December 2003.

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For further information, please contact:

Bernadette Collins
Public Affairs Manager
(03) 9829 8818

Note 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 Aviva or your financial adviser. Investors should consider the PDS before making an investment decision or deciding to continue to hold a product.