The portfolios, which provide clients with access to 33 diversified portfolios managed by leading investment managers, have experienced strong uptake through both AMP’s aligned adviser network and independent financial advisers.

All MyNorth managed portfolio clients benefit from professional investment management, the transparency and ability to track the performance of underlying assets on North Online, and ownership of the individual assets within their chosen portfolios.

The portfolios also allow clients to work with their adviser to select an investment option that reflects their own risk tolerance, enabling them to achieve longer-term objectives, be it accumulation or income.

AMP’s Director Wrap Product, Shaune Egan, said: “The rapid growth of MyNorth Managed Portfolios reflects the quality of the underlying investment managers, their low-cost structure, and the ease through which they can be accessed and administered on the MyNorth platform.

“We’re delighted by the continuing strong demand for the portfolios and will continue to invest in MyNorth to ensure it provides advisers and clients with unrivalled investment options and administrative functionality.

“MyNorth’s partnered managed portfolio range continues to grow as AMP works with advice practices to develop portfolios tailored for their clients, which are delivered with all the benefits that managed portfolios and the MyNorth platform offers.

“The MyNorth Sustainable Managed Portfolio, IndexPlus and Cornerstone series are all recent additions to the broader portfolio range. The former is underpinned by a responsible and sustainable investment framework, while IndexPlus blends low-fee, low-turnover index-based investments with actively managed strategies. Cornerstone are partnered managed portfolios developed in collaboration with leading advice practice Invest Blue and Russell Investments.”

Where clients are investing

Analysis of AMP’s Research Choice Managed Portfolios, which represent close to 75 per cent of total funds under management across the managed portfolio range, shows clients have remained broadly consistent with their investment risk profiles, despite the market disruptions caused by COVID-19 this year.

AMP Australia’s Chief Investment Officer, Lakshman Anantakrishnan, said: “COVID-19 has caused considerable disruption to markets, with the medium-term outlook remaining uncertain.

“Despite this disruption, clients invested in AMP’s Research Choice Managed Portfolios have remained generally consistent with their risk profiles and asset holdings.

“These clients, many of whom are advised, have resisted the urge to change their portfolios, reflecting a considered long-term investment approach and confidence that markets will recover in time.

“For pension clients holding funds designed to provide income, the lower risk Moderately Conservative is the dominant risk profile. Clients have consistently held approximately 45 per cent of their funds within this asset class over the past year.

“The only noticeable change for income focussed clients has been in the lightly held Aggressive fund range, where clients have increased their holdings from 1.7 per cent to 4.2 per cent. This potentially reflects a measured approach to increasing yield through slightly more aggressive allocations to higher risk assets, within the context of a lower interest rate environment.

“For those clients in pre-retirement accumulation phase, where there is naturally greater appetite for risk, Balanced has consistently remained the most dominant risk profile, with clients investing approximately 50 per cent of their funds in this option.”

AMP Research Choice Managed Portfolios – total client asset class investment breakdowns

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