UK insurer Aviva has finally reacted to pressure from advisers for a ‘baby’ platform option, and will release a simplified, low cost version of Navigator called Navigator Access.
The platform will have 30 managers, including some boutiques, covering most of the mainstream investment categories.
Diversified funds will not be included, but there will be some mortgage and high yield products on the menu, said Aviva general manager of products Tim Cobb.
“We have looked for the best fund managers in each category and the feedback we got from advisers about the short list has helped determine the final menu,” he said.
Aviva chief executive officer Allan Griffiths said adviser demand for low cost platforms was behind the move.
“Late last year our adviser council told us they were missing out on the bottom end of the market and were using our competitor’s platforms to service this demand,” he said. “They said they would like to use Navigator but it was a full service offering which was unsuitable for this market segment.”
Griffiths likens the product to Qantas’ launch of Jetstar, where the parent did not want to cannibalise its mainstream business, but wanted to capture a share of the budget flyer market.
“Navigator Access is simplified, with a limited menu that will not cannibalise the existing client base,” he said.
“If we did not launch a simplified platform we would just be giving market share away to other platforms.”
No prices have been set yet for the new platform, which will launch on July 1 into a highly competitive market segment already occupied by the likes of Colonial’s FirstChoice, AXA’s Generations, ING’s One Answer, Asgard’s Elements and BT’s Essentials.
“The fees will be low and competitive with our competitors,” Griffiths said.
