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MLC repricing Mom in bid to gain Sipp sales

The world’s third-biggest manager of manager provider MLC has revealed a new pricing structure which is aimed to tap into a growing self-invested personal pension market.

MLC, which is part of the National Australia Bank group, has scrapped
a more rigid cost structure to bring in flexibility so that advisers
can give reductions to clients.

It has also reduced annual management charges on its cautious
balanced portfolio which, according to Cerulli, is the fastest
growing multi-manager fund in the UK.

Charges on all investments on the fund over £100,000,
£200,000 and £500,000 are cut to 1 per cent, 0.9 per cent
and 0.8 per cent respectively from a figure of 1.2 per cent across
the board.

Cerulli’s multi-manager report predicts that the sector will grow by
14 per cent in the next four years. MLC believes that there is a
growing market of Sipp investors thatcan be channelled into
multi-manager investments.

MLC has six funds that have a staggered mix of debts and equities.
The diversified bond holds 100 per cent debt, while the diversified
share holds 100 per cent equity.

The cautious balanced is a 50/50 split of debts and equities, while
the conservative is 70 per cent debt, the balanced is 30 per cent
debt and the growth is 85 per cent equities.

Standard trail commission on all these funds is 0.5 per cent a year.
The more debt in the fund and the bigger the investment, the cheaper
the annual management charge has been set by MLC.

MLC head of IFA distribution John Cowan says: “We have designed our
new and flexible pricing structure on the back of increasingly strong
growth trends for multi-manager solutions among IFAs.

“With our pricing and overall offer, we are con-fident of winning a
greater market share of the large investments in the expanding Sipp
and personal wealth management areas.”

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