Monday, 20 June 2005

SYDNEY: MLC today announced a number of new customer benefits in its MasterKey Custom platform including fund level pricing in the MasterKey Custom Self Managed Super product and an increased number of ASX listed share options and hybrid securities available through MasterKey Custom Superannuation, from 1 July 2005.

“We have changed the way we calculate the stepped administration fee percentages by charging the administration fee on the combined value of the entire Self Managed Super Fund as opposed to individual member accounts,” said Anthony Waldron, Head of Investment Services.

“This enhancement means that customers using our self managed super service can benefit from potentially lower fees that can be accessed by the scale of combining more than one account together.”

To calculate fund level pricing you need to combine the value of each member’s account and apply the stepped administration fee percentage applicable to the entire balance of the self managed super fund. For example:

• Mrs Smith has a superannuation account valued at $465,000
• Mr Smith has a dual pension strategy with an Allocated Pension worth $85,000 and a Term Allocated Pension worth $450,000

 

 

 

Administration Fee structure pre 1 July 2005	Administration Fee structure post 1 July 2005
Fee is charged per individual members account: Mrs Smith $465,000 x 0.70% = $2,929.50 1 Mr Smith $85,000   x 1.12% = $952 (apply minimum fee)                               = $1,200 $450,000 x 0.70% = $2,835 2	Fee is charged based on the combined value of the Fund: Mr and Mrs Smith’s SMSF: $465,000 + $85,000 + $450,000 = $1,000,000 $1,000,000 x 0.37% = $3,700
Total fees payable: $6,964.50 pa	Total fees payable: $3,700 pa

 

Therefore there is a total fee saving for these accounts of $3,264.50 pa.

In addition to the fee changes, members of MasterKey Custom Superannuation will also be able to purchase Listed Securities from the Top 300 by market capitalisation of the ASX All Ordinaries, and access an additional 40 new listed fixed interest (hybrid) securities.

“These changes will provide wider investment choice and allow more sophisticated portfolio construction,” said Mr Waldron.

“At MLC we are constantly looking at how we can improve the customer experience and these enhancements will provide greater flexibility and make doing business with us even easier.”

Further information:
Stacey Mitchell
Corporate Affairs Manager
02 9966 3035
0400 305 446

Who is MLC
MLC is the wealth management division of the National Australia Bank. It is comprised of a group of companies, all of which are subsidiaries of the National Australia Bank.  MLC provides funds, platforms and services that support the provision of quality financial advice and help people realise and protect their lifestyle goals.  Through a vast network of financial advisers, MLC provides quality financial planning services, wealth creation (investments, private banking), wealth protection (insurance) and superannuation solutions to individual investors and corporate customers.  MLC also provides corporate and institutional customers with out-sourced investment, superannuation and employee benefit solutions. MLC manages more than $78 billion on behalf of individual investors and corporate customers in Australia (as at Dec 2004).

^{1 Includes 10% Family Group Fee Linking discount
2 Includes 10% Family Group Fee Linking discount}

* The information contained in this media release is for media advice purposes only. The contents are true and correct at time of publishing/issuing, however may change over time. For further information about NAB products or rates, please go to Interest Rates, Fees & Charges