MLC slashes fees by almost 1 per cent

Rising long-term bond yields and improved investor sentiment has lead NAB Wealth & MLC to lower the fees on its retirement solution MLC MasterKey Investment Protection by up to 0.9 per cent.

The product, which offers both protected capital and protected income, was designed for people over the age of 50 with accumulated savings of between $30,000 and $2 million. It has grown to $150 million under management since it was launched in December 2012.

The reduction in fees range from 0.20 per cent to 0.90 per cent per annum, depending on the term, level of protection and optional extras chosen.

MLC general manager, retirement solutions, Andrew Barnett, said the price of the guarantee varied depending on the shape of the long-term yield curve and market volatility.

“The yield curve has risen 100 basis points while the market is anticipating stronger economic growth associated with the United States Federal Reserve tapering stimulus,” he said.

“Like most retirement products, the price of the guarantee can rise or fall back depending on financial market conditions and long term interest rates, and we review our pricing every six months.”

Barnett said people saving for retirement were faced with the unique challenge of having to maintain an investment in growth assets in order to build sufficient savings and convert these savings into an income stream to last their lifetime. All this had to be balanced with managing their exposure to market risks.

“MLC MasterKey Investment Protection allows investors to stay invested in the market with confidence, benefit when the market goes up, protect their investment against market falls and locj in gains each year,” he said.

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Fundie fee pressure hits private markets

Fundie fee pressure hits private markets

Fee compression has spread beyond public equities into fixed income, emerging market equity, impact strategies and private markets, analysis by investment consultants bfinance has found. But the pricing power shifting towards allocators will not benefit everyone, and investors chasing better value for money will need to tread carefully.

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