AMP reshuffles ESG investment solutions

Launched in 2020, the sustainable portfolios are constructed on the objectives of transitioning to a low carbon environment, avoiding material investments in industries that may cause harm, and encouraging positive sustainable, social, and environmental outcomes.

Following a periodic review of the MyNorth Sustainable portfolios in the September quarter, the group has reduced the allocation of alternatives across the three MyNorth risk profiles by between 6 and 8 per cent.

With the goal of increasing exposure to asset classes in which AMP’s investment managers are able to “exercise greater influence on companies to achieve more sustainable outcomes”, allocations have been equally distributed between equities and Australian fixed income, while maintaining a consistent allocation to growth and deference assets across the portfolios.

AMP has also executed a number of manager changes, including divesting the Vanguard Ethically Conscious International Shares (unhedged) Funds and reducing exposure to the Impax Sustainable Leaders Funds.

As a result, that has now been allocated equally across AXA IM Sustainable Equity Fund, Janus Henderson Global Sustainable Fund and Dimensional Global Sustainability Trust.

“Each of these funds has been carefully considered to align with MyNorth portfolios’ sustainability principles and objectives. They also bring specific investment traits to the portfolio (either style or cap bias), increasing the overall diversification,” AMP said.

General manager of managed portfolios and investments for AMP, David Hutchison, noted that industry research has shown a strong demand for ESG investment options from both advisers and their clients.

“At North, we’re constantly looking at ways to innovate with a modern digital offering that provides advisers with a broad investment menu to suit advisers with wide-ranging investor needs – particularly those seeking investment options that can deliver sustainable outcomes over the long term,” Hutchison said.

“At the same time, we’re seeing rapid growth in the managed portfolio market given the transparency, governance, cost and administrative benefits they provide.

“AMP’s total managed portfolio assets under management has increased nearly tenfold in the space of four years, rising from $2 billion to $17.9 billion in the last quarter and continuing to grow in Q4.”

AMP group executive of platforms Edwina Maloney said she is pleased to see AMP continue to deliver on the needs of advisers “without compromising performance”.

“Our rapid growth over the past 12 months reflects the investments we’ve made to the platform, including technology upgrades and continuing to expand our managed portfolio range which is the fastest growing in the market,” Maloney said.

“We know advisers value choice and flexibility while keeping fees low for their clients and we’ve made these latest changes to improve our MyNorth Sustainable managed portfolios’ investment and sustainability characteristics.

“Over the coming months, we’ll continue to target our enhancements for North toward the three aspects that are most important for advisers and their clients in a wrap platform: better retirement solutions, improvement investment choice, ease of administration and value for money.”