A new category of tailored managed portfolios will deliver portfolio customisation at scale for advice practices, enabling advisers to access portfolio performance tracking and dedicated content support.
Advisers will be able to monitor their portfolios’ holdings, performance, access trade notices and market commentaries which can be white-labelled for their client base. Moreover, it provides customisation to suit a practice’s individual needs and investment philosophy.
The solutions utilise BlackRock Australia’s global custom managed portfolio technology, which is only available in the US currently. Moreover, AMP has harnessed Lonsec’s investment manager research and manager selection capabilities.
Advisers can access the products directly through AMP’s North platform as well as through Jigsaw Advice Solutions for self-licensed practices and independent advisers.
The expansion of its managed portfolio range has been driven by a 50 per cent rise in advisers using MyNorth managed portfolios over the past two years, according to AMP.
Recent findings from Investment Trends also discovered that 56 per cent of advisers had used managed accounts last year, which could rise to three-quarters in the coming years.
Despite this, AMP recognised that many advice businesses have faced barriers to adoption when seeking managed portfolios, such as off-the-shelf solutions not being suitable due to manager incumbency.
Commenting on the launch, Matt Lawler, AMP group executive for advice, said: “We’re excited to be launching a unique entry point into managed accounts for advice practices large and small that will, for the first time, bridge the gap between off-the-shelf and fully tailored private label managed account solutions.
“We recognise the value that managed portfolios are providing advisers and their clients, but that many smaller advice practices don’t have the required scale to benefit from them.”
Edwina Maloney, AMP group executive for platforms, said the new portfolios will see advisers grow their businesses, improve client outcomes and efficiently service more clients.
“At North, we’re focused on helping practices deliver great advice to their clients more efficiently. At the heart of this is our commitment to expand and strengthen our managed portfolio offers, including the ability for independent financial advisers and larger advice practices to tailor portfolios for their clients,” she explained.
According to Katie Petering, head of multi-asset investment strategy at BlackRock Australasia, Australia will be the first market outside of the US to benefit from the firm’s global model portfolio customisation technology.
She described: “This reinforces our commitment to continuously look for ways to introduce innovation in a sophisticated market like Australia, with the primary goal of democratising access to model portfolios for a broader base of advice practices.”
Last week, AMP announced it has expanded its range of diversified index managed portfolios with five risk-based multi-asset portfolios. These will allow advisers to service clients with various balances and investment goals via the MyNorth Super, Pension or Investment accounts.
The firm said it suits younger clients who are seeking a low-cost flexible, diversified investment solution, and offers more transparency than a traditional managed fund.
