MLC terminates MasterKey funds
MLC Investments is to terminate a number of funds within its MasterKey Unit early next year following on from the funds being closed to new business on August 20.
According to MLC, five funds will be terminated as of February 2005 because they have declined in size to such an extent they no longer hold a suitable spread of assets.
The funds are the NZ-Platinum Currency Managed Fund, the Inflation Linked Bond Fund, the National Balanced Fund, the National Capital Stable Fund, and the Global Bond Fund.
According to Morningstar, even with a five star rating, and returns of 7.89 per cent over three years, the NZ-Platinum Currency Managed Fund has just $ 0.38 million in net assets.
Similarly, the Inflation Linked Bond Fund has a four star rating, but has only $0.86 million in net assets.
The $1.41 million invested in the National Balanced Fund and the $1.31 million housed in the National Capital Stable Fund are also insufficient to maintain the funds.
The Global Bond Fund, with $13.69 million in net assets has returned 6.81 per cent over the past three years, but will also cease to operate.
MLC says the decision to close and terminate the funds followed a review of the range of investment options available to investors.
In addition, the group will close the Australian Bond Fund on November 28 to any new investments, other than reinvestment of income distributions.
“Following the closure of the Australian Bond Fund, MLC will continue to monitor the capacity of this fund to meet its investment objective and may make a decision to terminate this fund at a later date if it is in the best interest of investors to do so.”
Recommended for you
Two commentators have shared why cultural alignment can be the biggest deal breaker when it comes to advice M&A and how to ensure a successful fit.
With an abundance of private market options coming to market, due diligence becomes increasingly important as advisers separate the wheat from the chaff, adviser Charlie Viola has said.
The Treasury has launched a consultation into how the $47 million special levy for the Compensation Scheme of Last Resort will be funded.
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
