National Buys Deutsche Bank Financial Planning and Portfolio Management Businesses - 19 February 2001

National Australia Group today took a further step in execution of its wealth management growth strategy by announcing the purchase of the Australian financial planning and portfolio management businesses of Deutsche Bank for A$115 million.

The purchase will increase the Group's assets under management to in excess of $67 billion and number of financial planners to about 1,500.

Two businesses are being acquired:

First, Deutsche Financial Planning with 65 planning professionals and A$3.9 billion funds under advice. This business focuses on the high net worth segment of the retail market on a basis similar to Godfrey Pembroke Limited. Godfrey Pembroke became part of the National as part of the purchase of MLC.

Both firms provide full financial planning advice, largely on a fee for service basis, and are active in both managed funds and listed investments.

This alignment will enable the integration of the two businesses under the well-established Godfrey Pembroke brand, creating the pre-eminent high net worth financial planning offer in the market with 175 professionals nationally and over A$ 7.5 billion funds under advice.

Secondly, the portfolio management business of Deutsche will also be acquired. This business provides a manager of managers master trust, currently with A$1.3 billion in funds under management, and aligns well with the MLC MasterKey offering, which pioneered the manager of managers concept in Australia.

Mr Peter Scott, Chief Executive of the National's wealth management business, said "The purchase reflected the Group's strong commitment to its growth strategy focussed on tailoring wealth management solutions with multi-channel distribution in both the retail and wholesale segments of the industry."

Since the acquisition of MLC in July last year, the Group has moved quickly, launching a total investment solutions service in the wholesale segment through MLC Implemented Consulting. This was closely followed by acquiring distribution capability in the wholesale market, through its purchase of the asset consulting firm John A Nolan & Associates.

The implementation of the Group's strategy then led to the sale of County Investment Management to Invesco and now a further step to enhance the retail distribution and platform capability through the Deutsche Bank financial planning and portfolio management acquisition.

"Through this acquisition, the National will be able to create further economies of scale that will benefit clients, advisers and the wealth management businesses," Scott said.

Mr Steve Tucker, Chief Executive Officer Distribution of National's wealth management business, said "We have the broadest range of advice and investment solution platforms in the market. The new businesses align very well with our existing business model and allow us to continue to pursue scale benefits."

Mr Greg Devine, representing the advisers/affiliates of Deutsche Financial Planning, welcomed the announcement of the purchase. Devine said, "We were fully involved in the process to determine the most appropriate partner for us and are convinced this represents the best outcome for Deutsche Bank, the advisers and their clients. The extensive resources, systems and capabilities of the National Group represent a significant opportunity for advisers to better service their clients, grow their business aggressively and provide the highest quality advice proposition in the market."

Preparation for the smooth transition of the businesses will begin immediately. Completion is scheduled to occur by 31 March 2001.

For further details:

Brandon Phillips
0419 369 058

Julie McBeth
0418 992 485

Karen Hirst
02 9964 3983