AMP launches MyNorth ESG managed portfolio

From

Lara Bourguignon

AMP has launched a new sustainable managed portfolio, available through its flagship wrap platform MyNorth.

The MyNorth Sustainable Managed Portfolio, one of the first of its kind to be offered through a wrap platform in Australia, provides advisers and clients with a new values-based investment option through the efficiency and transparency of a managed portfolio structure.

The portfolio’s investment options are selected using a responsible and sustainable framework based on three principles:

  1. Transitioning to a low carbon economy – a measured but meaningful approach to structural change
  2. Avoiding strategic investments in thermal coal, tobacco, gambling, pornography and controversial weapons – avoiding harm, and
  3. Encouraging sustainable social and environment outcomes for the community – driving positive change through capital.

The principles were developed by AMP in close consultation with Regnan, a leading responsible investment advisory company, while the portfolio is managed by Pendal’s Multi-Asset Team in partnership with the AMP Research team. AMP’s platform business is a member of the Responsible Investment Association Australia.

Lara Bourguignon AMP’s Managing Director, Superannuation, Retirement and Platforms, said the launch of the MyNorth Sustainable Managed Portfolio continues AMP’s investment in the MyNorth platform, a key aspect of AMP’s go-forward strategy to help clients build wealth for retirement.

“MyNorth’s rapid growth over the previous year and a half reflects the investments and enhancements we’ve made to the platform, including significant fee reductions, technology upgrades and launching a range of new managed portfolios.

“We’ll continue to target our investment and enhancements for MyNorth toward the three aspects we know advisers and clients most value in a wrap platform: investment capability, administrative performance and value for money.”

Net cashflows onto the North platform increased by more than 150 per cent in the first quarter of 2020, compared to the same period in 2019. This included A$400 million of inflows from non-aligned AMP advisers in Q1 2020.

Shaune Egan, AMP’s Director Wrap Product said AMP was pleased to be offering advisers and clients a new socially responsible investment option through MyNorth.

“We know there is strong demand from our clients for sustainable and ethics driven investment options, with research showing that over half of Australia’s population are considering making ethical and responsible investments in the next five years[1]. Nine out of ten Australians also believe it’s important that their financial institution invests responsibly and ethically across the board.

“At the same time, we’re seeing rapid growth in the managed portfolio market given the transparency, governance, cost and administrative benefits they provide. AMP’s total managed portfolio assets under management increased four-fold in 2019.

“We developed this contemporary offer to make it easy and efficient for our clients and advisers to access the investments they’re most comfortable with.

“It follows the launch of several new portfolios in 2019, including our Partnered Managed Portfolio proposition. A full range of managed portfolios are now available on the MyNorth platform, covering major asset classes and managed by the industry’s leading investment managers.

“The range of enhancements we’ve made to the platform were recognised by Investment Trends, who recently determined MyNorth to be the most improved platform on the market.

“Our investment in MyNorth will continue, with more managed portfolios planned for later in 2020,” said Mr Egan.

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[1] Responsible Investment Association Australia RIAA

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