AMP launches ‘unique’ managed portfolio solutions

In what AMP called the first of its kind on the Australian market, the new managed portfolio offering allows advice firms access to flexibility and customisation to meet the needs of their clients in a cost-effective manner, regardless of the size of the firm.

“The portfolios use BlackRock’s multi-asset investment expertise and global custom managed portfolio technology, together with Lonsec’s investment manager research and manager selection capabilities to deliver portfolio customisation at scale to advice practices,” AMP said.

Utilising BlackRock’s global managed portfolio customisation technology, which is currently only available in the US, AMP Advice practices are now able to create a range of managed portfolios tailored to their client’s needs.

According to the bank, practices within the AMP Advice network and advisers operating under their own AFSL will be able to access the “pioneering managed portfolio solution”.

Over the last two years, North has seen a 50 per cent increase in advisers using MyNorth Managed Portfolios, and industry research firm Investment Trends reported a significant increase in Australian advisers’ engagement with managed portfolios, increasing from 16 per cent in 2012 to 56 per cent in 2023.

AMP group executive, advice, Matt Lawler said some firms have been unable to access fully tailored managed portfolios but the new offering would allow smaller firms to take advantage of this investment opportunity.

“We recognise the value managed portfolios are providing advisers and their clients, but that many smaller advice practices don’t have the required scale to benefit from them,” he said.

“That’s why we’ve partnered with BlackRock and Lonsec to pave the way forward with an industry-leading solution that addresses many of the traditional barriers to adoption – including personalisation, incumbency and scale.”

Lawler said this would enable smaller firms the flexibility to meet clients’ needs where off-the-shelf products have missed the mark.

“We’re excited to be launching a unique entry point into managed accounts for advice practises large and small that will, for the first time, bridge the gap between off-the-shelf and fully tailored private label managed account solutions,” he said.

“Through this innovative new offer, AMP-aligned practices, as well as smaller eligible practices through Jigsaw, will be able to create tailored, high-quality investment portfolios for their clients which are governed, managed, and administered by world-class asset managers utilising world-class tech.”

Speaking on the announcement, Lonsec’s group chief executive, Michael Wright, said the firm is “thrilled to work with AMP and BlackRock to bring the next generation of managed accounts to market”.

“This new managed portfolio solution will empower licensees like AMP Advice to create a suite of tailored portfolios that can allow certain customisations within the scheme for aligned practices – a first-of-its-kind breakthrough in the Australian wealth market,” Wright said.

“We expect this new managed portfolio solution will enable more advice practices to be able to reap the benefits of managed accounts for their businesses and clients.”

AMP group executive, platforms, Edwina Maloney said the new offering allows North to fulfil their commitment to helping meet the needs of advisers and their 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,” Maloney said.

“That’s why we’re thrilled to be the first platform in Australia to offer these new portfolios, allowing more advice practices to grow their businesses, improve end client outcomes, and efficiently service more clients.”