North partners with BlackRock and LIS to deliver model portfolios at scale

North has launched new “Blend” capabilities for its model portfolios that bridge the gap between off the shelf and fully tailored solutions as the first in a series of enhancements aimed at “democratising access” to model portfolios for advice practices of all sizes.

Working in collaboration with BlackRock and Lonsec Investment Solutions (LIS), AMP said the new offering will prove particularly valuable for practices wanting to utilise asset customisation of a model portfolio in a way that is efficient without the hassle that comes with fully tailored solutions.

According to the firm, the new portfolios utilise both BlackRock’s global custom model portfolio technology and extensive knowledge of multi-asset investments and Lonsec’s investment manager research and manager selection capabilities to deliver “portfolio customisation at scale to advice practices”.

With efficiency as one the top priorities among advisers, North suggested this enhancement will address many of the “traditional barriers to adoption” when it comes to model portfolios, namely personalisation, incumbency and scale.

Access to portfolio performance tracking and dedicated content support will also be available for advisers, allowing them to monitor performance.

This announcement comes as North reports a 50 per cent increase in advisers using MyNorth model portfolios over the last two years, now with more than $20 billion in funds under management (FUM).

BlackRock Australasia’s head of investment strategy, Katie Petering, said the firm is pleased to work with AMP and Lonsec again to “democratise” advisers’ access to model portfolios.

“Drawing on our 30+ years of experience in managing multi-asset portfolios and global technology for customising model portfolios, this collaboration enables advisory practices to tailor highly sophisticated managed accounts to suit their end clients’ investment preferences – something that was previously out of reach,” Petering said

With the portfolios to be supported by Lonsec’s extensive managed accounts expertise, the investment firm’s chief investment officer, Nathan Lim, said this latest addition by North will help support the needs of more advisers and their clients.

“This new managed portfolio solution will enable practices using North to create a suite of tailored portfolios – a first-of-its-kind solution to be offered by an Australian platform,” Lim said.

“We expect this solution will enable more advice practices to be able to reap the benefits of managed accounts for their businesses and clients.”

David Hutchison, the general manager of managed portfolios and investments at AMP, suggested the new Blend portfolio offering is aimed at serving the needs of practices that want an investment solution that is neither off the shelf or fully tailored that have been largely “forgotten” by platforms, providing both flexibility and efficiency.

“We’re really excited to support advice practices large and small with a tailored entry point into managed accounts by providing them with the capability to tailor portfolios without a full build – and create a way they can benefit from model portfolios while still using their current approach to portfolio construction as part of their advice proposition,” Hutchison said.

“The new Blend solution, only available on North, creates opportunities for advisers who don’t fully outsource investment selection to step into model portfolios for the client and adviser benefits.”

Working with BlackRock and Lonsec, AMP group executive of platforms Edwina Maloney said the hope is that this new offering will help bridge this gap in the market and allow practices to boost their client offerings without sacrificing efficiency.

“Through this innovative new offer, we’re helping practices accelerate their efficiency by creating tailored, high-quality investment portfolios for their clients which are governed, managed and administered by world-class asset managers utilising world-class tech,” Maloney said.

“In less than four years, our managed portfolios have grown tenfold and continue to be the fastest-growing offer in market thanks to the support from our advisers, asset consultants and fund managers we work with.”