After the Hayne Royal Commission many advisers decided to steer away from large dealer groups in favour of becoming self-licensed. In the last six months, however, that trend has taken an abrupt turn.
While known for being the flagbearer for financial product providers, the Financial Services Council is now making serious inroads into the financial advice sector.
BlackRock-nabtrade partnership brings more competition to ETF market
The National Australia Bank’s (ASX:NAB) Private Wealth division this week announced a partnership with the world’s leading index fund manager, BlackRock. Under the partnership, the two have come together to launch a suite of innovative iShares ETFs.
Highlighting the need to “make ETF investing more accessible for all Australian investors,” the news adds further competition against Vanguard, which is in the process of launching its own superannuation product in the Australian retail market.
According to the announcement, the ETFs will be globally diversified, investing across multiple asset classes, not unlike a balanced or growth fund, with a particular focus on ‘ESG’ and sustainability.
Long the domain of professional investors using their low-cost products to build core-satellite portfolios or manage fee budgets, the strategy confirms a ramping-up of competition and direct-to-consumer contact for the group.
“NAB’s customer insights highlight that investors are increasingly looking for better value and guidance along their investment journey. They’re also looking for more sustainable investment options and ease in constructing a diversified global portfolio,” the bank explained, with the launch to be accompanied with ETF-related education content on the nabtrade platform.
“As one of the global pioneers in ETF investing, BlackRock iShares is known for the breadth of its global offering, sustainability focus, and investor education in helping investors understand how they should think about portfolio construction,” Nick Greiner of NAB said.
“At NAB Private Wealth, we look to partner with global and local leaders to deliver unique and innovative investment solutions to our clients.
Jason Collins, deputy head of Australasia at BlackRock said: “The combined expertise of BlackRock and NAB Private Wealth draws on our global iShares product set paired with local insights to develop funds specifically designed to meet Australian investors’ evolving needs.
“The convenience of ETFs is enabling a new generation to invest. ETFs have helped more Australian investors access diversified exposures and portfolio outcomes, and ultimately pursue their long-term wealth creation and investment goals.
The new iShares ETFs are expected to be available in August via nabtrade with a dedicated ETF Centre comprising the latest insights, education, and tools.
