Navigator Investment Services Ltd - a comprehensive financial planning and investment portfolio management service - announced today that Central Provident Fund (CPF) Members will be able to use their CPF Ordinary and Special Accounts to subscribe to Navigator’s state-of- the-art investment platform from 1 December 2002.
CPF Ordinary and Special Accounts can now be used to access best-in-market managed funds through a single gateway with greater cost savings and transparency
Navigator Investment Services Ltd - a comprehensive financial planning and investment portfolio management service - announced today that Central Provident Fund (CPF) Members will be able to use their CPF Ordinary and Special Accounts to subscribe to Navigator’s state-of-the-art investment platform from 1 December 2002. Through Navigator, which is the first Investment Administrator to be included under the CPF Investment Scheme (CPFIS), CPF Members will be given access to a wide range of best-in- market unit trust funds and sophisticated investment management tools via their chosen Financial Adviser.
Launched in October 2002 in Singapore, Navigator will initially offer CPF Members access to 75 unit trust products offered by 12 fund managers. In addition, investors, via their Financial Advisers, have access to up-to-the-minute independent research, financial planning software and investment management tools, all on a single platform, giving Members control over their retirement savings. Navigator is scheduled to expand its product offerings in 2003 and will apply to have these additional investment products included under the CPFIS.
Navigator was pioneered in Australia in the early 1990s and currently manages over A$9 billion in investment funds. Navigator has experienced a growth rate of 20 per cent per year, making it one of Australia’s largest and fastest growing investment administration services. Currently, in Australia, over 60 per cent of investments in unit trusts flow through an administration service like Navigator.
Navigator is a wholly owned subsidiary of Aviva Group (formerly the CGNU Group), the world’s seventh largest insurance and fund management group. Aviva plc is listed on the London, Paris and Dublin stock exchanges.
With Navigator, CPF Members now have another investment option for accessing the unit trust market. The Navigator option provides a range of services and benefits that have been specifically designed to make investing for retirement and wealth creation simple, transparent, flexible and cost- effective.
These services and benefits include:
- Detailed financial planning and advisory services offered by qualified and licensed Financial Advisers
- Best-in-market unit trust funds included under CPFIS provided by reputable international investment managers; the diversity of unit trust funds allows investors to personalise their portfolios according to their individual investment styles, sector choices and their current - and changing - financial goals and objectives for both lump sum investments and regular savings plans
- Outsourced investment research provided by NRA Capital Pte Ltd (formerly NetResearch Asia Pte Ltd), the first independent equity research company to be licensed by the Monetary Authority of Singapore; NRA Capital independently selects products for inclusion by Navigator, regularly evaluates approved products and fund managers; and provides market commentaries to facilitate investment decisions
- End- to- end administration services allowing real time financial planning, flexible management of assets, including fund reinvestment or redistribution, and consolidated financial reporting, all via the Navigator platform
- Consolidated reporting, enabling investors to view their total unit trust holdings purchased through Navigator on a single statement; CPF investors will also be able to view their investment reports on Navigator’s website (www.navigator- asia.com) with updated market values on a daily basis
- Transparent fees and charges - no fund manager front- end sales charges, no fee or commission bias between funds, free and efficient switching between funds and free portfolio reweighting, all for a small administration charge by Navigator of 0.35% per annum, charged monthly in arrears on the average balance of funds invested with Navigator. In addition, Navigator will reimburse Members all Agent Banks’ fees and charges.
Mr Steve Heald, Managing Director for Navigator Investment Services Limited, Asia, said: “We are pleased to be the first Investment Administrator to be included under the CPFIS and we look forward to justifying the faith placed in us by CPF investors."
In seeking CPF Board’s inclusion, Navigator stressed the benefits of its offerings to members, namely the higher standards of financial advisory and investment management services and greater cost savings. Navigator will also comply with all regulations for service providers who handle Members’ CPF savings and investments, specifically as regards information disclosure, account reconciliation with Agent Banks, audit requirements and service standards.
Mr Heald said: “Navigator is delighted with our inclusion under CPFIS as it gives us access to a huge potential investment market which consists of over S$63 billion of uninvested funds. Coming soon after our launch in Singapore only a month ago, this is an encouraging development and reflects the confidence in the system’s proven benefits for CPF Members.”
Explaining Navigator’s significance for CPF Members, Mr Heald, said: “For an aging population, retirement savings is now more important than ever before. However, until now, the entry cost for CPF Members investing in unit trust funds has been prohibitive especially when compared to the returns offered by these funds during the recent economic downturn. Navigator now offers CPF Members the opportunity to invest in unit trusts with no front-end sales charges. In addition, Navigator will also absorb all Agent Bank fees charged to CPF Members, which again reduces the entry costs for Members wishing to invest in the unit trust market.
“Retirement savings is a long-term strategy. With a diversified portfolio of property, cash, fixed interest and equities, investors should aim to achieve double-digit returns over a 10 – 15 year period. This objective will require a weighting of investments in growth asset classes such as property and equities to maximise investment returns,” he said.
Navigator facilitates protection against market volatility by enabling investors to switch between funds at no cost, which means investors can move in and out of different asset classes when required as a result of changing needs or changing economic conditions.
Mr Heald said: “Navigator is a truly independent platform. It doesn’t own any distribution or product manufacturing capability and it outsources its research – which all add up to assuring CPF Members and our customers that they are not being influenced by biased advice. Our aim is to provide a totally independent environment of open architecture, which allows investors, through their advisers, to invest in the right mix of unit trusts to deliver the best possible financial outcomes for them.
“Put simply, Navigator offers investors the most efficient way to plan, choose, manage and track their CPF investments. It puts Members in control.”
For CPF Members who opt to use Navigator’s services, Navigator will liase directly on their behalf with Agent Banks and CPF Board for release of investors’ CPF savings. CPF Members who wish to use Navigator’s services should contact the Navigator Client Service Centre on 6827 7555 or e-mail: service@navigator-asia.com
About Navigator
- Navigator is a comprehensive financial services platform designed specifically for professional Financial Advisers to make investing and wealth creation on behalf of their clients simple, efficient, flexible and cost effective. Its open architecture model provides investors access to best-in- market unit trust funds, free switching from one fund to another, quality independent research, and sophisticated financial planning and investment management software, all in one place. With no fund manager front-end loads (sales charges), no switching fees or exit costs and no commission bias between funds, Navigator’s fees and charges are transparent and comparatively lower than traditional sales channels.
- Launched in Singapore in October 2002, Navigator Asia will initially offer investors a choice of 75 unit trust funds offered by 12 different managers. Given the recent implementation of the Financial Advisers Act and the emergence of Independent Financial Advisers (IFA) in Singapore, Navigator’s launch comes at the forefront of the development of the IFA market and the expected demand for advisory services in Singapore.
- Pioneered in Australia in the early 1990s, Navigator Australia, through its range of investment and pension products, now administers more than A$9 billion – and has been growing exponentially at around 20 per cent per year.
- Navigator Investment Services Ltd is wholly owned by Aviva plc (formerly CGNU Plc), the world’s seventh largest insurance and fund management group, the largest insurer in the UK and one of the top five life companies in Europe. By choosing Navigator, investors benefit from the global strength and security of Aviva, while enjoying a strong partnership with a local financial organisation.
For further information please contact:
Ms Geeta Mirchandani
Account Director
Weber Shandwick Worldwide
Tel: 6825 8083
geetam@webershandwick.com
Steve Heald, Managing Director of Navigator Investment Services, is available for interviews.