North adds more term deposits as asset class takes off

North’s investment menu has been expanded with the addition of National Australia Bank (NAB) as a new term deposit provider, with North saying that they have been added to the platform in response to feedback from advisers.

Citing AMP data, North said that interest in term deposits has more than doubled over the last 12 months among both aligned and independent financial advisers, driven by clients seeking safe haven defensive assets in a rising interest rate environment.

Namely, term deposits had fallen out of favour in a low-interest rate environment, but in the wake of the Reserve Bank’s aggressive tightening of interest rates over the past 18 months, they have made a comeback.

This is reflected in the statistics provided by North, which revealed that on 31 August 2023, total funds held in term deposits on the platform measured $1.93 billion, up from $967 million last year.

NAB executive, markets, John Bennett, said: “We are very pleased to announce the addition of NAB term deposits on the North platform. Platform term deposits are an important part of our business, and we are delighted to have this opportunity to work with North.”

The wrap platform also added the iShares Enhanced Strategic Index Portfolios range, as well as additional risk profiles for the Lonsec Listed Managed Portfolios series, and the Russell Investments Sustainable Managed Portfolios range.

AMP group executive, platforms, Edwina Maloney, said: “AMP continues to strengthen the breadth of investment menu choice and options on offer through North.

“The addition of these offers from BlackRock, Lonsec, Russell Investments, and NAB reflect the feedback we get from advisers on the financial solutions that give them and their clients most value.

“We recognise the importance of staying responsive to our clients’ evolving needs. This is why we continue to invest in North’s platform functionality to provide an industry-leading platform that gives advisers greater choice, flexibility, and transparency in the market.

“This expansion of North’s investment menu aligns with our vision for providing a broader spectrum of opportunities that enhance the experience for advisers on the North platform.”