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National Australia Bank moves into wealth arena

National Australia Bank is off-ering a wealth management service initially competing with IFAs but with plans to target them as a distribution channel in around a year&#39s time.

The wealth management service is targeting the 4.5 million customers of NAB&#39s UK regio-nal banking subsidiaries, Clyd-esdale, Northern and Yorkshire, through their 700 branches.

NAB&#39s tied salesforce of about 230 is offering the service from outset and it will be extended to its 100 internal salaried IFAs over the next six to nine months. In the next 12 to 18 months, NAB will offer the service to IFAs nationwide.

The core of the offering is a manager of managers service from its MLC investment management subsidiary, which will diversify portfolios across asset classes and markets.

A choice of six funds are included at launch from seven managers – Fidelity Investments, Morley Fund Management, Western Asset Management, Phillips & Drew, Capital International, Henderson Global Investors and Deut-sche Asset Management. NAB says it will be expanding this range.The service will be marketed under the regional brand names of its banks, with the MLC brand in the background.

Fees include an initial charge of 3 per cent. Annual charges are between 1.25 per cent and 1.85 per cent.

National wealth management executive general manager Paul Rogan says: “We firmly believe in face-to-face advice and recognise that 80 per cent of investment business is done through intermediaries. Our manager of managers service is different from a fund supermarket as advice is emb-edded in the proposition.”

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