Aviva-owned platform provider Navigator has added direct shares to its investment platform in an attempt to tap into the increasing popularity of direct investing amongst Australian retail investors.
As of today, Navigator superannuation and retirement clients will be able to invest directly in a range of ASX 200 shares including stocks from Coles Myer, Telstra, Commonwealth Bank and BHP.
Navigator chief operating officer Grant Salmon said clients will be able to purchase these direct shares through the Navigator Personal Retirement Plan, giving those who also want to purchase managed funds one single investing point.
“This means the performance of their active portfolio will be reported on the one easy to read document, complete with details of their capital gains and other relevant tax information,” Salmon said.
As part of the new service, Navigator will provide share administration and transacting technology, including access to equities research. It will also allow online switching between managed funds and shares to assist financial planners who want to provide share advice to investors.
“This reduces ‘messing’ around with another account for direct shares and even the need for a separate stock broker,” Salmon said.
According to research conducted last year by the Australian Stock Exchange, Australia now has one of the highest levels of share ownership in the world, with 37 per cent of Australian adults having a direct share portfolio. ASX also found 30 per cent of investors with direct share portfolios had sought advice from a financial planner on direct shares in the two years leading up to March 2003.
Recent Australian Prudential Regulatory Authority (APRA) figures have estimated that the amount of direct shares within superannuation is growing at about 20.9 per cent every year. Using APRA’s figures, Navigator predicts that investment in direct shares could grow from $105 billion in 2004 to $260 billion in 2009.
