NAB has announced the merger of five of its superannuation funds, creating a $70 billion retail fund that will be known as the MLC Super Fund.
The creation of the MLC Super Fund is part of the restructure of NAB’s wealth management business following the partial sale of its insurance division.
In October 2015, NAB announced the sale of 80 per cent of its life insurance manufacturing business to Japanese insurer Nippon Life.
In a statement released today, NAB said the sale to Nippon Life necessitated the establishment of a standalone life insurance business.
“The establishment of this business requires the life business to be structurally separated from the superannuation and investments business, which NAB is retaining,” NAB said.
“As part of this process, NAB is also simplifying the structure of its superannuation business.”
The MLC Super Fund will incorporate the MLC MasterKey business and Plum, and will have more than one million members and approximately $70 billion in funds under management.
The five funds that will be incorporated are Plum Superannuation Fund, Universal Super Scheme, National Australia Bank Group Superannuation Fund A, BHP Billiton Superannuation Fund and Worsley Alumina Superannuation Fund.
NAB executive general manager for superannuation and investment platforms, Paul Carter, said the creation of MLC Super Fund “lays the groundwork” for the planned $300 million investment by the business into wealth management.
NAB Wealth group executive and chief executive of MLC Andrew Hagger said it is the largest organic investment the company has made into its wealth business in the last 15 years.
“We want to build new wealth products where our customers feel supported, their experience is personalised and it is easy for them to do business with us,” Mr Hagger said.
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