Wealth Management

Building and protecting your wealth Over customers across four regions Managing almost on behalf of retail and corporate customers

About Us

Wealth Management is a business partner for financial advisers. We provide quality financial planning services and a range of investment, superannuation, banking and insurance solutions to build and protect clients' wealth throughout their lives. We serve customers in Australia, New Zealand, Europe and Asia.

HIGHLIGHTS MLC received gold awards in the Life Insurance and Corporate Super Master Funds categories of Personal Investor Magazine Awards for Excellence in Financial Services 2002 We are the fourth largest pure Manager of Managers organisation in the world. (Cerulli Report, July 2002 - measured by funds under management) Investment sales in Europe increased by 29% over the previous year Over 1,000 of our people donated 7,000 hours to over 40 community organisations in three countries through our People and Community Trust initiative

In 2002, our Australian business increased market share in its core operations of Insurance (up from 12.9% to 13.7%) and Retail Investments (up from 14.4% to 14.5%).

Corporate sales in Australia also increased by 50% over the previous year. The Australian business was strengthened by the integration of the National Private Bank, and repositioning the corporate business as a comprehensive advice and implementation provider. By the end of the year, 17 of Australia's top 50 companies (by market capitalisation) outsourced a variety of asset consulting, investment, superannuation and member-orientated services to Wealth Management.

Our overall performance was impacted by volatility in equity markets. As announced in August 2002, our results were also impacted by $64 million before tax ($45 million after tax) in compensation provided for investors relating to a reduction in unit prices, which occurred in October 2001 in relation to certain products managed by National Australia Financial Management Limited (NAFM).

Market strength
To further strengthen our position in the Australian market, the Group has committed to invest $200 million over the next three to four years. The focus of the investment is to deliver a number of tactical and strategic enhancements to our financial planning tools, investment platforms, reporting and service capabilities. This will help position us as the partner of choice for financial advisers and a leading provider of quality advice.

Internationally, we continued to leverage our core Australian capabilities into the European and Asian markets. We launched a new financial planning and investment service in the United Kingdom based on MLC's multi-manager investment process and customer relationship practices. In Hong Kong, we established a new business to provide financial planning expertise across a diverse range of solutions from mutual funds to home loans and life insurance.

Our workplace environment reflects our business culture - it's innovative, creative, open and transparent. MLC Campus North Sydney

We provided a dedicated adviser training and development program to help advisers meet new regulatory requirements. This has been fundamental in helping to attract and retain professional financial advisers.

Consistent long-term returns
Volatile market conditions caused concern for many investors over the last 12 months. To address these concerns, we conducted an extensive communications program to reinforce the value of maintaining long-term investment strategies and of seeking professional financial advice. The program reassured investors using MLC's proven Manager of Managers investment system that their investments were in safe hands.

The Manager of Managers investment approach gives investors access to a combination of specialists in each asset class globally, providing diversity across and within asset classes and across complementary investment styles.

International expansion
In Europe, we continue to grow with sales increasing 29% from the previous year.

In Asia, we believe the new business in Hong Kong will revolutionise financial planning in this market. The business is based on the model that operates in Australia that works towards building long-term relationships with customers to help them achieve their financial and lifestyle goals.