AMP’s advice platform has partnered with BlackRock and Lonsec to enhance its model portfolio offering, delivering “market-first” investment capabilities to smaller practices.
North’s new “Blend” capabilities for its model portfolios bridge the gap between off-the-shelf and fully tailored solutions as a way to democratise access to model portfolios for advice practices of all sizes.
Working in collaboration with BlackRock and Lonsec Investment Solutions (LIS), AMP said the offering will particularly suit advice practices wanting to efficiently utilise the asset customisation of a model portfolio without the need for a fully tailored solution.
With efficiency as one of the top priorities among advisers, North suggested this enhancement will address many of the adoption barriers surrounding model portfolios, namely personalisation, incumbency and scale.
David Hutchison, general manager of managed portfolios and investments at AMP, said smaller practices that require neither an off-the-shelf solution nor a fully tailored one have been “forgotten” by platforms.
“[We are] providing them with the capability to tailor portfolios without a full build – and create a way they can benefit from model portfolios, while still using their current approach to portfolio construction as part of their advice proposition,” Hutchison said.
The portfolios utilise both BlackRock’s global custom model portfolio technology and extensive knowledge of multi-asset investments and Lonsec’s investment manager research and manager selection capabilities to deliver “portfolio customisation at scale to advice practices”.
Access to portfolio performance tracking and dedicated content support will also be available for advisers, allowing them to monitor performance.
BlackRock Australasia head of investment strategy, Katie Petering, said the firm is pleased to work with AMP and Lonsec again to “democratise” advisers’ access to model portfolios.
“This collaboration enables advisory practices to tailor highly sophisticated managed accounts to suit their end-clients’ investment preferences – something that was previously out of reach,” Petering said.
With the portfolios supported by Lonsec’s managed accounts expertise, chief investment officer Nathan Lim said: “This new managed portfolio solution will enable practices using North to create a suite of tailored portfolios – a first-of-its-kind solution to be offered by an Australian platform.
“We expect this solution will enable more advice practices to be able to reap the benefits of managed accounts for their businesses and clients.”
This announcement comes as North reports a 50 per cent increase in advisers using MyNorth model portfolios over the last two years, now with more than $20 billion in funds under management.
