The Cash Account is the central hub for managing transactions in and out of your MLC Wrap and MLC Navigator Series 2 accounts. For the minimum Cash Account requirement, please refer to the relevant disclosure documents.
The Cash Account is allocated across the following two investments:
|Investment||Target asset allocation|
|NAB Professional Funds Account||>99%|
|A bank account with NAB||<1%|
You can find out more about these investments here:
From 1 October 2018, the target rate is equal to the Reserve Bank of Australia (RBA) official cash rate. Interest is calculated daily and paid to the Cash Account quarterly. If your Cash Account is negative, you’ll be charged this same interest rate on your negative balance which will be offset against any positive interest accumulated during the quarter.
This may happen if you buy investments using proceeds from sales that aren’t final, or if you haven’t adequately catered for fees or other transaction payments coming from the Cash Account.
The table below shows the distribution applied to the Cash Account each quarter.
|Quarter ending||Distribution rate||One year performance|
|30 June 2018||0.18%||0.73%|
|31 March 2018||0.18%||0.74%|
|31 December 2017||0.19%
|30 September 2017||0.18%||0.77%|
Please note: The actual asset allocation may vary from time to time for different Services. Therefore, the distribution rate may vary slightly between different Services. Between 1 October and 1 December 2018, there’s an interim benefit, as the target net interest rate during this period will be RBA official cash rate plus 0.75% pa.
Cash Account Fee:
From 1 December 2018, a Cash Account fee of 0.75% pa is charged in addition to the other administration fees you pay on your MLC Wrap Series 2 and MLC Navigator Series 2 accounts.
The Cash Account fee is based on your daily Cash Account balance and will be deducted before net interest is paid to your account. We’ll ensure the interest paid to you on positive Cash Account balances is not lower than 0% pa, by reducing the ‘Cash Account fee’ as necessary.