National Australia Bank (NAB) has moved to up the ante in the superannuation space by leveraging the structural separation of its insurance business to create Australia's largest retail superannuation fund.
The big banking group has used the structural separation process to effectively consolidate its superannuation trustee arrangements around a single fund — MLC Super Fund.
The company announced that the fund would boast around $70 billion in funds under management (FUM) and would include NAB's existing super offerings — MLC MasterKey and Plum superannuation and pensions.
Discussing the move with Super Review, MLC Wealth Advice executive general manager, Greg Miller, described the process as having amounted to a large simplification of the trustee arrangements around the various superannuation products.
He said the banking group had been progressively informing clients of the changes.
NAB superannuation and investment platforms executive general manager, Paul Carter, said the consolidation of the super fund would, over time, make it easier for customers to move between various products and features with the fund.
The transaction with Nippon Life required the structural separation of the life insurance manufacturing business and the superannuation and investments business. Prior to the consolidation process, there were eight superannuation funds under three trustees.
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
So what says Silkie; mine is still bigger than yours.