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Frequently asked questions

  1. How do I get started?
  2. Why invest with Navin Asset Management?
  3. Why would I invest in a portfolio of shares and not a managed fund?
  4. What happens if I wish to leave?
  5. Can I make regular contributions in the same way I do with a managed fund?
  6. Can you manage my self managed superfund if I have retired?
  7. Can my portfolio be customised or have exceptions?
  8. Can I use gearing with my portfolio?

How do I get started?

We understand that finding appropriate investment opportunities can be daunting. We can help you to get started. Just tell us a bit about your individual circumstances and we can help you find some possibilities to consider.

To organise a meeting, please contact us.

After our meeting if you wish to proceed, and we feel our service is suitable for you, opening an account is easy.

Clients establish an account with us by lodging cash or existing shares. Investments are not pooled, they are held under your own individual HIN which is sponsored by ANZ E*TRADE. We process all market transactions through ANZ E*TRADE and establish an ANZ bank cash management account (CMT) for you to settle share transactions. This account is also used to receive dividend payments and process management fees.

There are a range of things that you need to consider before you get started,

  • What are your short, medium and long term financial goals?
  • What investments do you have and are you adequately diversified?
  • What levels of risk suit you?

Why invest with Navin Asset Management? How do you ensure that all clients receive access to the same investment opportunities, regardless of the size of their account?

Upfront we enter into an agreement with you to operate your account within certain investment guidelines. All portfolios are managed on this basis. This allows us to transact on your account without constantly contacting you.

The benefit is that all clients (large and small) have equal access to investment opportunities that were previously only available to the largest clients. You will not be disadvantaged due to the size of your account.

To align our interest with yours we are not remunerated based on brokerage or transactional fees. We charge a fee for service.

All transactions are completely transparent as you have online access to your portfolio coupled with quarterly reporting.

Many advisors are remunerated based on brokerage or transactional fees. Under this type of structure often smaller clients do not receive the same service as large clients. Markets move quickly. Smaller clients can get caught with portfolios that are no longer appropriate, as advisors contact their largest clients first.

Why would I invest in a portfolio of shares and not a managed fund?

Our service allows you to conveniently and efficiently acquire a diversified portfolio of Australian shares. This allows you to achieve greater tax efficiency. Unlike managed funds you do not inherit any existing tax positions. When it comes time do your tax it is as simple and easy as taking one consolidated report to your accountant.

In a managed fund investors have no ability to use tax planning. They buy into everyone else’s cost base, meaning they inherit everyone else’s capital gains.

“In an environment where the average Australian equity fund has lost 19 per cent in last financial year, most managed fund investors are sitting on losses in the value of their units while still having to pay tax on capital gains earned within the fund.” The Australian August 26th 2009.

What happens if I wish to leave?

The shares in your portfolio are in your name. You have the choice of selling them or transferring them to another provider at any time. You do not sign a fixed term contract.

With a managed fund if you want to switch investment managers you need to sell all your units in one fund and buy units in the other fund. Issues with liquidity can mean that you are locked out of the market for weeks. This also means that you can create an unwanted tax event.

Can I make regular contributions in the same way I do with a managed fund?

Regular contributions can be made to your portfolio. This particularly important for Self Managed superfunds which are receiving regular contributions from members.

Regular contribution or dollar cost averaging is a well regarded means of managing the risk of timing your entry into an investment.

Can you manage my self managed superfund if I have retired?

Yes, we manage a number of Self Managed Superfunds that are in the pension phase. We are able to make quarterly payments to fund your lifestyle.

The average life expectancy for Australian’s is 81.2 years. (United Nations List 2005 - 2010). This means that if you retire at 65 on average you have to fund your lifestyle for another 16 years on average. Continuing to invest in growth assets is imperative.

Can my portfolio be customised or have exceptions?

We provide an exclusive professional service to a select group of clients. This allows us to manage exceptions like the case listed below.

Client A has a large holding in Commonwealth Bank that she has inherited. She wants to diversify her portfolio, but does not want to sell the entire holding straight away.

Can I use gearing with my portfolio?

We offer our clients the option to use gearing via a margin loan account. We actively manage gearing levels based on an initial agreement with you. Generally returns on margin accounts exceed standard portfolios in a rising market. Naturally in a falling market the portfolio without any gearing will perform better.

For investment returns on geared accounts we manage, please contact us.

Australians have generally geared into property via their home or an investment property, but increasingly more and more people recognise the benefits of borrowing to invest in the sharemarket as a way of generating wealth. This is because:

  • gearing provides you with more funds to invest - potentially magnifying your returns
  • gearing is flexible – allowing you to choose the degree of gearing that best suits your financial circumstances and objectives
  • gearing can potentially be tax efficient - this is because the interest costs on money borrowed for investment purposes can generally be claimed as a tax deduction.