NAB rolls out MasterKey in UK…
TheNational Australia Bank(NAB) Group has leveraged off its Australian operations and launched a financial planning service through its network of UK based banks.
The launch of the service, through the Clydesdale, Yorkshire and Northern Banks, is in conjunction with theMLCInvestment Portfolio service, better known as MasterKey.
National Wealth Management executive general manager Peter Scott says the new service was part of the group’s planned growth in the UK and is the first major move to come off the back of NAB’s purchase of the MLC Group last year.
Scott says this service would target more than 4.5 million customers in the UK and assist them in developing long term financial goals.
National European Wealth Management chief executive Paul Rogan says the service would build on the strengths of the banks, a step which reflects NAB’s strategy in Australia. However he says over time independent financal advisers would also be targetted to distribute the product offering in the future.
“The Clydesdale, Northern and Yorkshire banks are very solid customer relationship brands in their respective markets. We have a trusted distribution network of financial planners who carry the brand of the customers’ bank.
“Our objective is to introduce a service that is capable of building and growing with additional features over a period of time in line with what customers need. We are not restricting our investors to high minimum investments because we believe good financial planning starts early, often with a small amount,” Rogan says.
At present customers of the bansk will be offered investments in the MLC Open Ended Investment Company, ISA or PEP either via a lump sum at a minimum of £3,000 (A$7500) or by monthly savings at a minimum of £50 (A$125).
Customers will also be offered access to six funds, four single sector and two multi-sector. The single sector funds will focus on UK equity, global equity, high income and sheltered growth while the multi-sector funds will have a conservative and balanced option.
The funds will also be combined to create investment portfolios and through the planning service customers will be able to access a wide range of investment managers through MLC’s manager of managers investment approach.
NAB says the planning and advice service is a premium service and the intial fee charge is three percent, dropping to 1.25 to 1.85 per cent per annum, but justifies this by stating there would be a high level of customer contact and regular review.
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