Discounts for MLC customers invested in NAB investments

25 June 2020

National Australia Bank’s MLC Wealth is giving customers a discount when invested in NAB-owned investments, according to reports.

Reports by the Australian Financial Review said that MLC charged customers in the existing “full investment list” an extra 0.1% per annum on any investments not owned by NAB, and charged 0.15% for any Australian Securities Exchange (ASX) listed investments.

The report was in relation to the MLC Wrap Super Series 2 which was also named MLC Navigator Retirement Series 2. The wrap initially was available as a full investment list and in April 2020 launched a core investment list.

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Both wraps are only available to advised clients and once in the wrap it is possible for clients to transition between full or core independent of their adviser.

The full investment list has investments managed by external and internal managers while the core list is managed only by internal managers.

Speaking to Money Management an MLC spokesperson said: “Clients and their advisers have choice, flexibility and transparency when comparing the full wrap and core offers.

“The MLC core investment list was launched in April this year and offers a focused range of investments with a simplified admin fee of $260 per annum. It is suitable for clients who want the benefits of being invested in a wrap, though have simpler needs and are looking only for multi-asset/manager funds to invest in.

“The full investment list offers more than 400 options, enabling clients to access a range of managed funds, shares, exchange traded funds, separately managed accounts and term deposits. Clients with broader investment needs may find the full investment menu more applicable. The full investment list includes a competitive tiered pricing model.

“We are now providing clients with greater choice by having the full and core options available on the one platform. Clients can easily traverse between the core and full investment list in consultation with their adviser as their needs change over time, and will retain the same account number.

“The launch of the new core investment list in April follows the significant price improvements made on our wrap platform in February 2019. MLC’s Wrap offers are available to advised clients only.”

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Sounds like Coles & Woollies home brand. No one seems to bothered by them. However the big issue is the internal rate of return on the MLC funds, which canny investors are aware of. Now MLC funds management (& others) have shafted all their loyal advisers, get ready to see a lot more of those fund disappear elsewhere.

their Horizon funds seem reasonable, not great, fairly high cost, but median type performance at best - lower risk strategy than most however, hence the lower returns.

I do think there some discussion around whether this was 3rd line enforcement which the ACCC should have been interested in but if there are genuine extra costs to have external funds then fair enough. I find platforms while useful, very complex fee wise, and you never really seem to know what is happening in terms of platform shelf fees etc being paid and the effect - there seems to be no clear statement on these matters, or how much money they make from cash.

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