MLC terminates MasterKey funds
MLC Investments is to terminate a number of funds within its MasterKey Unit early next year following on from the funds being closed to new business on August 20.
According to MLC, five funds will be terminated as of February 2005 because they have declined in size to such an extent they no longer hold a suitable spread of assets.
The funds are the NZ-Platinum Currency Managed Fund, the Inflation Linked Bond Fund, the National Balanced Fund, the National Capital Stable Fund, and the Global Bond Fund.
According to Morningstar, even with a five star rating, and returns of 7.89 per cent over three years, the NZ-Platinum Currency Managed Fund has just $ 0.38 million in net assets.
Similarly, the Inflation Linked Bond Fund has a four star rating, but has only $0.86 million in net assets.
The $1.41 million invested in the National Balanced Fund and the $1.31 million housed in the National Capital Stable Fund are also insufficient to maintain the funds.
The Global Bond Fund, with $13.69 million in net assets has returned 6.81 per cent over the past three years, but will also cease to operate.
MLC says the decision to close and terminate the funds followed a review of the range of investment options available to investors.
In addition, the group will close the Australian Bond Fund on November 28 to any new investments, other than reinvestment of income distributions.
“Following the closure of the Australian Bond Fund, MLC will continue to monitor the capacity of this fund to meet its investment objective and may make a decision to terminate this fund at a later date if it is in the best interest of investors to do so.”
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
