MLC refines its global strategy - 4 July 2005

Monday, 4 July 2005

SYDNEY: MLC, Australia’s largest multi-manager, has refined its global equity strategy by appointing four new high conviction managers and moving two incumbent managers to higher conviction strategies.

The four new managers are Alliance Capital Australia Limited, DFA Australia Limited, Walter Scott & Partners Limited and Wellington Management Company, LLP. 

They replace four departing managers Fidelity International Limited, Lazard Asset Management, Platinum Asset Management and Vanguard Investments Australia Limited.

MLC has also switched the mandates of ABN AMRO Asset Management (Australia) Limited and Bernstein Investment Research and Management to higher conviction strategies.

Chris Condon, Chief Investment Officer of MLC Investment Management said “This is an exciting next step in the evolution of MLC’s multi-manager portfolios.  MLC’s close working relationship with its managers has resulted in the creation of new high conviction, tax aware, mandates by four of our managers; namely ABN AMRO, Alliance Capital, DFA and Wellington Management.  In each of these cases, the manager created a new product that is specifically tailored to meet the high conviction, tax aware objective.” 

“It is these kinds of initiatives that help us remain at the forefront of multi manager portfolio investing globally.”

“This is an example of how MLC’s scale enables us to do in depth research of global equity managers and offer mandates that are large enough to warrant managers creating new products that are specifically tailored to meet the needs of our clients.”

Mr Condon said the refinements enhanced the robustness of the MLC global equity strategy by:
• Reducing our clients’ manager related dependencies;
• Creating greater potential to grow wealth after fees and taxes; and
• Creating greater potential to produce attractive performance in a wider variety of market environments.

Mr Condon said the changes followed a review of the global share strategy, which involved 290 meetings with prospective and incumbent managers.

There will be no change to investment fees due to these enhancements.

The table below shows the changes to the MLC global share fund’s exposure to each manager.

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).

While due care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information. Except where under statute liability cannot be excluded, no liability (whether arising in negligence or otherwise) is accepted by MLC for any error or omission or for any loss caused to any person acting on the information contained in this publication.

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