As the Cash Account is used for all transactions on the account, every MLC Navigator account is required to invest an amount in the Cash Account. For the minimum requirement applicable to each MLC Navigator product, please refer to the relevant Product Disclosure Statement / IDPS Guide or Financial Services Guide.
The Cash Account is allocated across the following two investments:
|Investment||Target asset allocation|
|NAB Professional Funds Account||88%|
|A bank account with NAB||12%|
More information about these investments is available below.
The target rate of return on the Cash Account is the RBA Cash rate less 0.50% pa. Interest is calculated daily and paid to the Cash Account quarterly. If your Cash Account is negative, you will be charged interest on your negative balance on a quarterly basis. 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 interest is charged at the daily rate applicable for the Cash Account, for the time that your Cash Account has a negative balance. The charge will be offset against any positive interest accumulated during the quarter.
The table below shows the interest applied to the Cash Account each quarter.
|Quarter ending||Distribution Rate||1 year performance|
|30 June 2018||0.25%||1.04%|
|31 March 2018||0.26%||1.06%|
|31 December 2017||0.27%||1.07%|
|30 September 2017||0.26%||1.10%|
Note: The actual asset allocation may vary from time to time for different Services. Therefore, the distribution rate may vary slightly between different Services.