NAB signals expansion in funds management
National Australia Bank chief executive Frank Cicutto has signaled that the group is intent on further expansion in funds management by doubling its contribution to the bank’s profit.
"With the MLC acquisition we now have over 10 per cent of our profits coming from wealth management. Our target is 20 per cent from this area," he says.
"The integration of MLC is on track. As well as cost savings and normal business growth, there are some unique benefits we believe will come from the acquisition."
Cicutto the Australian wealth management market is growing at nearly 30 per cent a year. MLC products such as Plum, AdvantEdge and Your Prosperity are uniquely positioned in the Australian market and NAB expects them to provide excellent growth.
He says MLC's manager of managers investment approach can be readily exported to markets such as the UK.
"We are investigating the potential of launching an investment service in the UK capable of being distributed through multiple channels, including our own branch network," he says.
Recommended for you
Magellan has closed out the financial year with funds under management approaching $40 billion and outlined its estimated performance fees.
First Sentier Investors chief executive, Mark Steinberg, is set to depart the asset manager after seven years.
Metrics Credit Partners has completed the acquisition of Taurus Finance Group and BC Investment Group as it looks to launch consumer lending arm Navalo.
AMP has announced to the ASX that it is being sued by property fund manager Dexus regarding the sale of its real estate and domestic infrastructure equity business.
