MLC switches to active investment

National Australia Bank's MLC wealth management arm has opted for a major shift in strategy, with the bank dropping many “passive” funds managers that seek to replicate overall stock market returns. Instead, MLC wants to pursue more “active” investment strategies. NAB dropped Fidelity, Lazard, Vanguard and Platinum as fund managers. MLC reallocated $9 billion of funds among 15 asset managers. MLC uses a “multi manager” approach and does not directly undertake any investment itself. MLC accounts for 14 per cent of retail funds under management in Australia. MLC also said a quarter of its property funds would be invested outside Australia. MLC described its new investment strategies as “high conviction, index-agnostic, very tax-aware.”

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