MLC cash component in super account vanished due to bad NAB investment in UK.

Just wondering if this was legitimate… I had a fair chunk of my super in cash within an MLC super account (MLC was owned by NAB until recently). When I got my account statement, the CASH component had gone from thousands of dollars to cents. When I queried it with MLC they said it was due to NAB investing the money in British banks and one of the banks had become insolvent and my cash was lost. I was not convinced. I would have understood if this was the international shares component of my account that taken a loss but how come the cash component? Why was NAB/MLC using the cash components of super funds on NAB owned British banks?

Given the shenanigans the banks and super funds have been caught out on so far could this have been another one?

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  • +6 votes

    I am not a financial planner, but I do work in the finance industry. I'm making a lot of assumptions without knowing your age, account type, investment strategies, balance etc.

    But if I opted for a cash option in my Superannuation, I would not want my provider to invest in a foreign bank that even whispered the word: insolvency.

    A cash option, is generally a LOW-RISK option. I would confidently notch this one up to a bad decision an investment manager has made.

    That being said - immediately contact the Financial Services Ombudsman, and read-up on the many class actions being lodged against MLC and NAB.

    Don't be quiet about it. They've lost your money, while charging you fees to manage it.

    Good luck!

    • +1 vote

      Sounds pretty ridiculous doesn't it. To add, the cash component would be held in several banks not just one, so if there was a loss it would be a partial one.


        Not really. ALL investments carry risk. Usually, investing in a bank is pretty safe - almost as safe as putting it into a savings account. Banks aren't wizards, nor can they tell the future.

        Yes, NAB/MLC have royally F'ked up here, but it's not as ridiculous as some people are making it out to be. I mean - it's not like NAB weren't doing all they could to protect their own investment in the UK too.


        Would have thought the fund would hold a diversified portfolio rather than putting all the eggs in one basket.


      Could it be that they've invested in bonds (rather than shares) issued by that British bank and, now that the British bank is allegedly insolvent, MIC has to write down the value of those bonds because it isn't able to recoup the investment in full?

  • +3 votes

    Contact the ombudsman and get more info on this, this sounds ridiculous. Please keep us updated with how you go


    Which British bank allegedly was the money placed into?


    Could be a few other things, as mentioned we aren't giving advice I work in the industry, but something to look for is also insurance premiums coming from your cash account, advice fees, admin fees.

    Check out this article on AMP. Their cash account fee is really high the interest it is supposed to make doesn't cover it….


    Does sound quite odd. If you google the relevant cash option, you should see the performance and it likely wont be negative.Make sure you select the correct product. eg MLC masterkey cash option

    It could be a fee that have come out of the cash option. eg insurance premium, admin fee, adviser fee. It could be a switch / rebalance into another investment option.
    If you look get a transaction history or some sort you should be able to see all transactions in / out of that option / your whole super. Do some digging first or call them again before ombudsman.


    Check the fund description, rather than just going by the name. It should tell you what the fund manager is allowed to invest your money in. If they deviate from that, then the strength of your complaint would be even stronger.