MLC reaching into SMSFs

Achieving greater reach into the self-managed super fund (SMSF) sector has been one of the key drivers behind the development of the new MLC Wrap, according to group executive of MLC & NAB Wealth Steve Tucker (pictured).

MLC made significant investment into the new wrap’s SMSF functionality, said Tucker.

“We think the SMSF market is one of the fastest growing segments, and we’re the leading provider of superannuation investments for retail investors in this country,” he said. “For us not to be able to take into account that strongly growing sector and provide the functionality that advisers need to continue to work in that area would be a mistake.”

“What [MLC Wrap] enables us to do is broaden our reach further, particularly into the SMSF sector, because that’s always been a key area for us and will continue to be a key area.”

The new wrap will have a number of offerings that have traditionally been the domain of self-directed investors, such as separately managed accounts and exchange-traded funds. Tucker agreed that while many investors with SMSFs did not seek advice, there were many who did — and it was sensible to provide advisers with increased capabilities to service this sector.

Tucker said the group was working on other developments for direct investors that would be released in 2011.

Successful wraps would be those that could lower costs, execute into different markets and provide a service offering to a broad range of investors, he said.

He said the MLC Wrap would allow advisers to deal with many different types of investments, “from the very wealthy and sophisticated investor that needs SMSF services and other direct equity capabilities, through to those that have fairly standard needs around superannuation that they want to execute around an efficient platform”.