AMP cuts fees for its flagship MyNorth wrap platform

From

Alex Wade

AMP has announced a series of fee reductions to its flagship MyNorth wrap platform, benefiting more than 85,000 clients.

The reductions will provide significant savings for existing and new superannuation, pension and investment clients, taking effect on 1 May 2019.

AMP’s CEO, Australian Wealth Management, Alex Wade said, “We’re pleased to be reducing fees for existing and new clients of MyNorth – AMP’s flagship wrap investment platform.

“In the last twelve months we’ve continued to improve MyNorth, including adding a range of managed portfolios, the Advantage Fund Series, and enhancing the platform’s adviser reporting and modelling functionality.

“Following these fee reductions, MyNorth will be one of the best value wrap platforms in market and will compete very strongly on price across a range of account balances.

“Advisers and clients continue to respond favourably to MyNorth’s fee-free working cash account which offers a leading interest rate compared with peers. This is in addition to a range of even higher rate cash investment options available through the platform.

“Families will also benefit from the changes, with MyNorth becoming one of the first wrap platforms in which six family members can join together to reduce administration fees, saving hundreds of dollars each year.

“The changes reflect AMP’s heightened commitment to improving client outcomes, and follow our recent MySuper fee reductions, which have benefitted more than 600,000 AMP clients.”

The reductions include:

  • Lower administration fees across the platform’s two investment menus, Select and Choice, of up to 0.10 per cent and 0.20 per cent p.a. respectively.
  • Overall lower administration fee caps for individual clients and families (by up to $700 per family group).
  • Families can team up with six members (up from four members) to save on administration fees and reach the family administration fee cap sooner.
  • Lower MyNorth index investment management fees of 0.10 per cent p.a.
  • MyNorth clients can also continue to take advantage of MyNorth’s leading working cash account interest rate, which has no fees attached.

According to Strategic Insights’ latest market analysis MyNorth is one of Australia’s fastest-growing wrap platforms[1]. Since launching in early 2016 it has grown to more than
$24 billion AUM as of February 2019.

Overall, AMP’s North platform, of which MyNorth is the contemporary offer, received close to A$4 billion in net cash inflows in 2018.

 

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[1] Strategic Insight, Marketer View September 2018

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