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AMP’s Advantage Funds hit $2 billion AUM milestone as investors seek yield
17 September 2019

AMP’s Advantage Funds have grown to more than $2 billion in assets under management in less than two years since launching.

The funds, available to advisers and clients through AMP’s flagship MyNorth wrap platform, provide low cost access to 31 leading wholesale managed funds and cover all major asset classes.

Rod Finch, AMP’s Managing Director Wealth Products & Platforms said:

“The continuing strong demand for the Advantage Fund range reflects the quality of asset managers, diversity in investment options, and the low cost at which we’re able to provide the funds to advisers and their clients, including up to a 25-basis point discount against the equivalent wholesale fund management fees.”

“Advantage Funds are an important part of our flagship MyNorth wrap investment offer, which we’re continuing to strengthen through our growing managed portfolio range,” said Mr Finch.

AMP launched a new MyNorth Partnered Managed Portfolios offer in July this year, following a reduction in fees for more than 87,000 MyNorth clients and families.

Seeking yield

While fixed interest, Australian equities and international equities remain the dominant asset classes for clients and advisers, exposure to both fixed interest and international equities reduced over the course of the last financial year.

Lakshman Anantakrishnan, Chief Investment Officer of AMP’s Australian Wealth Management business, believes the trend is likely driven by record low rates.

“While fixed income remains the dominant investment class, we’ve seen a shift to higher income generating assets such as infrastructure and property as clients seek greater yield.

“The same drivers may have also led to a greater allocation to Australian equities, with domestic markets continuing to provide better yield than offshore markets.”

“The small fall in international equities and movement of funds to domestic equities may also reflect growing uncertainty in global markets,” commented Mr Anantakrishnan.

Advantage Fund asset class investment breakdown

Asset class July 18 July 19
Alternatives 3% 2%
Australian equities 20% 24%
Fixed Interest 38% 34%
Infrastructure 6% 7%
International equities 31% 29%
Property 2% 4%

Source: AMP

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