Navigator slashed its fee structures for existing and new customers in December and November respectively.
Navigator slashed its fee structures for existing and new customers in December and November respectively.
Allan Griffiths, Chief Executive Officer, said Navigator has reduced fees for existing and new customers with larger account balances. "The changes mean that Navigator is passing on greater discounts to top clients. While it is good to improve our terms for new investors, the real win comes from reducing fees to existing clients which is not always the case in this industry," Mr Griffiths said.
"The new pricing reflects Navigator’s focus on delivering a full platform service that offers value for money for investors," he said. "We continue to differentiate from competitors by offering a broad investment choice for clients with diverse needs, without the switch transaction charges made by others who are offering newer types of wraps in the market."
The fee reductions, which are incorporated in recent offer document roll overs, are:
- a reduction in discount thresholds from $400,000 and $800,000 to $300,000 and $600,000 respectively;
- increased discounts for the Personal Retirement Plan; and
- reduced fees for most balances over $1 million including a flat Navigator fee of 0.10% per annum on the amount over $1 million.
New fee discount structure – Personal Investment Plan*
| Account balance | Personal Investment Plan discount per annum | Example for Personal Investment Plan |
|---|---|---|
| $300,000 – $599,999 | 0.10% on the ongoing admin fee | 0.82% – 0.10% = 0.72% pa plus adviser remuneration |
| $600,000 – $999,999 | 0.20% on the ongoing admin fee | 0.82% – 0.20% = 0.62% pa plus adviser remuneration |
| $1,000,000+ | 0.20% discount on the ongoing admin fee on the first $1,000,000. 0.10% ongoing admin fee will be charged on the remaining balance plus the agreed adviser remuneration | Fee for first $1m 0.82% – 0.20 = 0.62 pa Remaining balance 0.10% pa plus adviser remuneration |
New fee discount structure – Personal Retirement Plan*
| Account balance | Personal Retirement Plan discount per annum | Example for Personal Retirement Plan |
|---|---|---|
| $300,000 – $599,999 | 0.20% on the ongoing admin fee | 1.03% – 0.20 = 0.83 pa plus adviser remuneration |
| $600,000 – $999,999 | 0.30% on the ongoing admin fee | 1.03% – 0.30 = 0.73 pa plus adviser remuneration |
| $1,000,000+ | 0.30% discount on the ongoing admin fee on the first $1,000,000. 0.10% ongoing administration fee will be charged on the remaining balance plus the agreed adviser remuneration | Fee for first $1m 1.03% – 0.30 = 0.73 pa Remaining balance 0.10% pa plus adviser remuneration |
* All percentages for ongoing administration fee are inclusive of GST and net of RITC rebates.
-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.