A new strategic intent and operating model for MLC Wealth

Last week MLC Wealth CEO Geoff Lloyd announced a new strategic intent for MLC Wealth, and a new operating model to deliver it.

'Over the last year, it's become very clear that the Australian wealth management industry needs to change fundamentally. The industry needs to get better. MLC needs to get better so we can deliver higher quality outcomes for clients', Mr Lloyd said.

'We believe we can best serve our clients by making the most of the depth and breadth of the capabilities we've developed over many years. So we're reshaping MLC into a portfolio of individually strong businesses that will deliver trusted advice, retirement and investment solutions.'

The new operating model is built on four individual pillars:  Advice, Platform, Retirement & Investment Solutions and Asset Management. 'Each pillar will be a stand-alone, sustainable business,' said Mr Lloyd. 'Together, they will enable us to deliver better wealth management solutions for our clients. They will be individually strong, but collectively even stronger.'

'The four pillars reflect what's most important to our clients. Financial advice is a cornerstone of our business. We believe strongly in the advice profession and the need for Australians to access high quality, professional advice that fits their needs and life stage. Super is a key part of our business and we’re committed to assisting Australians to plan for and live well in retirement. Asset Management will continue to develop solutions that clients need, both for their super and non-super.  And finally, clients need a market-leading platform and administration capability for their complex financial needs.'

The four pillars will be supported by six centres of excellence which focus on deepening client insights and engagement through the use of data and digital services. They will also drive a client-centric culture and evolve the governance model.

Mr Lloyd also announced that MLC will focus on several key initiatives over the next three years, including:

  • Advice. MLC wants to lead in the advice industry and is committed to continuing both employed and self-employed advice models. It will reshape its Advice businesses to be successful and sustainable, servicing clearly identified client segments. To achieve this, MLC will undertake a strategic review of its advice businesses.
  • Wrap. MLC believes in providing quality advice to those who have complex needs and recognises that a competitive Wrap solution is essential. It will continue to offer a Wrap solution and has announced that it will also explore options, including partnerships, to provide a superior and market-leading platform and administration capability.
  • Modernising its superannuation offers. MLC wants to be at the heart of its clients’ superannuation needs and will continue to modernise its master trust offer so that retail and business clients have contemporary and relevant platform solutions.
  • Asset Management. MLC will continue to deliver investment solutions to institutional, retail and private clients. It will invest in its existing market-leading capabilities, including multi-asset and private equity, develop more contemporary vehicles and simplify its product solutions to meet clients’ evolving needs.
  • Digital. MLC will invest in digital capabilities to deliver a superior client and member experience through a range of digital tools.

Mr Lloyd said, 'I'm excited about the changes ahead that will reshape our business and help us to deliver better outcomes for our clients. We're progressing well towards our separation from NAB, and I’m confident our strategic intent and new operating model will set us up for success as a future leader in Australian wealth management.'