AMP has expanded North’s investment offerings with the launch of its new low-cost managed accounts range, which it said would allow advisers to meet the varying needs of clients.
Featuring five risk-based multi-asset portfolios, the new range aims to give advisers the ability to service clients with various balances and investment goals at a “highly competitive” rate.
The lower price point, AMP said, would also mean that advisers can incorporate managed accounts into the portfolios of younger clients who likely have fewer assets but are still looking for investment solutions that allow them to diversify their portfolios.
“With North’s diversified index range, advisers can now capture low-balance accumulators 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,” AMP added.
The firm said that the projected $3.5 trillion intergenerational transfer of wealth means it is essential to have structures in place to ensure the smooth transfer of assets.
AMP said the addition of this range equips advisers to “manage intergenerational wealth transfers with ease and plan for client succession with a flexible, low-cost solution for low-balance accumulators, while also leveraging the in-specie asset transfer benefits”.
AMP SMA lead portfolio manager Brad Creighton said there are certainly clients that want or need the low-cost investment solutions this delivers, but the range can also help meet the demands of a wide range of clients.
“We’re excited to be growing our range of managed portfolios. Yes, the price point is an attractive feature of diversified index, however, this product is really about enabling advisers to provide and construct the most robust investment solutions for their clients,” he said.
“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.
“What makes this passive investment offering unique to North is that the single sector building blocks are portable across other North-managed portfolio solutions, enabling low friction transitioning as clients’ investment needs evolve.”
AMP group executive, platforms, Edwina Maloney, said the range will provide a more financially accessible investment solution to meet the needs of the next generation of clients.
“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,” she said.
“With older Australians expected to pass on $3.5 trillion in inheritances by 2050, we’re passionate about helping advisers support this critical intergenerational wealth leap by helping them capture the clients of tomorrow.
“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.”
