National pulls up stumps on Your Prosperity

Online investment toolYour Prosperity, owned byNational Australia group, has had its portfolio service and superannuation trust closed down after a strategic review showed up a lack of demand for its services.

In a letter to investors, Your Prosperity chairman Geoffrey Summerhayes says there has been a slower than expected take up of online managed fund investing since the businesses its launch in 1998.

He says this was exacerbated by challenging market conditions over the past two years, which have resulted in fewer people than anticipated choosing a do-it-yourself approach to investing.

Summerhayes says these reasons, combined with a strategic focus on adviser-based investment services by the National, rather than do-it-yourself methods, are to blame for the closure.

The businesses has moved to reassure investors that the closure will not affect the security of the investments in their accounts, and that their value will continue to be determined normally.

Though Your Prosperity will not be accepting any new members, investors will be able to operate their account in the usual way until January 2004, with all accounts are to be closed by February 2004.

Investors have been encouraged to sell and transfer the investments in their accounts and withdraw all cash holdings, with Your Prosperity to transfer remaining funds to investors’ nominated accounts in January.

The National says the 32 employees of Your Prosperity will not be sacked, but will be redistributed to other positions within the group.