AMP North ramps up retirement income focus with managed account expansion

The new additions to North’s management portfolio include BondAdviser, MST Income and Elston Income managed portfolio series., which AMP said would provide advisers more flexibility in creating “tailored managed portfolio solutions, particularly for clients seeking income protection, certainty and fixed income in retirement”.

The aim of these portfolios is to help provide more options to generate steady income and preserve the capital of retirees while limiting the downside of risk in the face of unpredictable markets.

MST Income, which was founded in 2017, specialises in tailored income solutions for wealth managers and institutional investors. According to AMP, it will provide exposure to a “defensive asset class while still delivering high income and will help clients manage the phased transition from hybrids”.

The Elston Income Series has been specifically developed for retirees and income-seeking investors and provides “better cash flow matching to meet regular income needs”.

The inclusion of employee-owned fixed income and credit provider BondAdviser is, according to AMP, a unique addition to the platform that offers a new value proposition, bringing fixed-income exposure to clients.

“Our mission is to be the home for retirement income solutions in Australia,” Edwina Maloney, AMP group executive, platforms, said.

“That means ensuring advisers are well supported with efficient, market-leading tech and solutions to help their clients prepare for and thrive in retirement.”

AMP stated that alongside its “MyNorth Lifetime” solution, its managed accounts have been “central” to the organisation attracting new advisers, with funds under management nearing $20 billion.

David Hutchison, AMP’s general manager of managed portfolios and investments, highlighted that easing the work of advisers has been a key part of this portfolio expansion: “We’re passionate about empowering and enabling advisers with access to choice and flexibility through North, thanks to our long-standing partnerships with world-class investment managers.

“That’s why we’re excited to be teaming up again with MST Financial for their fixed income series, providing our advisers with optionality and confidence when it comes to retirement income solutions for their clients. The addition of the MST Income, Elston Income and BondAdviser series highlights our commitment to growing the breadth of our offer.”

He added: “We have the fastest-growing offer in the market and we’ll continue to focus on expanding the breadth of our menu, helping ensure North is the easiest platform for advisers to do business with.”

The announcement follows AMP announcing a collaboration with BlackRock and Lonsec Investment Solutions to help 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.

It is also part of a growing trend in large Australian financial institutions looking to grow their footprint in the world of retirement advice. Earlier this week, MLC, TAL and Challenger partnered to created their “Centre of Excellence”, which MLC parent company Insignia claims will be an “innovative retirement solution for advisers and their clients”.

AMP has also recently looked to enhance their digital advice offerings for retirees, unveiling recent improvements it has made to its Lifetime retirement projections platform.