North’s managed portfolio range has seen massive growth over the past two years to pass $9 billion in AUM and comprise about 15 per cent of North’s total AUM, which was $62.8 billion at 31 March 2023.
The numbers include North’s IndexPlus Managed Portfolios and the iShares Enhanced Strategic International Managed Portfolio, both of which SQM Research recently awarded a four-star Superior rating.
North said that the platform’s growth in managed portfolio AUM is outstripping the wider market, with the most recent Institute of Managed Account Professionals figures showing a roughly 10 per cent increase in AUM for managed accounts over the six months to 31 December 2022.
Edwina Maloney, AMP director of platforms, said: “The exceptional growth and uptake of North’s managed portfolios reflects the considerable benefits they provide advisers and their clients, including low-cost access to world-class investment managers, and efficient and transparent reporting.
“They also free up time for advisers to focus more time on what they do best — provide advice.”
The platform added that while diversified risk-based portfolios make up the majority of AUM held in its managed portfolios, there has been an increase in interest in the platform’s environment, social and governance (ESG)-based investment options.
North’s ESG-based managed portfolios saw a client increase of more than 240 per cent in the two years to 28 February 2022, while ESG-based AUM on the platform grew by more than 300 per cent over the same period. North said it had added 58 ESG-based investment options across the platform in the past year.
North has also partnered with the Responsible Investment Association Australasia (RIAA) to develop A guide to ESG investing, which was released earlier this year.
“As we work with advisers to continue to strengthen North’s managed portfolio offer, we also recognise that four out of five Australians now expect their retirement savings to be invested responsibly and ethically,” Ms Maloney said.
“Our guide to ESG investing is helping inform advisers and clients about ESG-based investing so they can take full advantage of North’s growing ESG-based investment choice.”
The latest milestone follows North clearing $5 billion in managed portfolios AUM in June 2022, which represented a 140 per cent increase in 12 months.
“The evidence is clear, that managed portfolios are now the preferred way for most advisers to support the investment needs of their clients, and we expect this growth to continue,” Ms Maloney said at the time.
