AMP expands North range with diversified index managed portfolios
AMP has launched a range of five diversified index managed portfolios on its North investment platform.
The risk-based multi-asset portfolios allow advisers to service clients with various balances and investment goals via the MyNorth Super, Pension or Investment accounts.
The firm said it suits younger clients who are seeking a low-cost flexible, diversified investment solution, and offers more transparency than a traditional managed fund.
Described as “low balance accumulators”, AMP said these are those clients who are looking to progress from a passively managed portfolio into the actively managed Index Plus (Core Satellite) portfolio as their balance grows and their investment needs become more complex.
This demographic is tied into the intergenerational wealth transfer as advisers look to help clients with their estate planning and provide solutions for the next generation. Some $3.5 trillion in inheritances are expected to be passed on by 2050.
The portfolios cover nine sectors including emerging market equities, Australian equities and global listed infrastructure.
According to a recent Investment Trends report,15 per cent of new client inflows into managed portfolios over the last 12 months went into index managed fund portfolios.
Brad Creighton, AMP SMA lead portfolio manager, said: “This product is really about enabling advisers to provide and construct the most robust investment solutions for their clients.
“There are always going to be clients that either require or prefer a low-cost solution. Equally, there is a considerable number of clients suited to a more bespoke and sophisticated investment solution where a mix of low-cost ‘core’ and higher cost ‘satellite’ components represent the optimal solution. Diversified Index is designed to play a role in all of those situations.”
AMP group executive for platforms, Edwina Maloney, added: “Advisers are increasingly looking for ways to service a broader pool of younger clients, and we’re pleased to be giving them the support they need with an exciting new range aimed at low balance accumulators.
“We are also continuing to expand North’s investment menu over the coming months to give advisers the very best in range, flexibility and seamless on-platform experience.”
Last November, HUB24 launched a Discover offering for low-balance clients which it said had been “well received” by advisers. This offering targets early-stage wealth accumulators and later-stage retirees with less complex needs and has $75 million in funds under administration as at 31 March 2024.
AUTHOR
Laura Dew
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
