AMP has made several enhancements to its MyNorth Sustainable managed portfolios in line with our commitment to customers.
As a core ESG principle, the portfolios invest in funds where managers influence the companies they invest in with respect to environmental, social and governance matters.
In addition to a stronger alignment of the portfolios with sustainability objectives and improving diversification, management fees are now lower for all options, with a reduction of at least five basis points across the three portfolios.
The MyNorth Sustainable Portfolios, which launched in 2020, are multi‑manager, multi-asset portfolios designed to encourage positive social and environmental outcomes while achieving competitive investment returns. Specifically, the portfolios are constructed using a responsible and sustainable framework based on three objectives 1.
These include the transition to a low carbon environment, avoiding material investments in industries which may cause harm and encouraging positive sustainable, social and environmental outcomes.
Growing demand for ESG solutions and responsible investment
Consumer research shows more Australians are prioritising responsible investment, with 88% of Australians expecting their super or other investments to be invested responsibly and ethically (up from 83% in 2022)2.
The move to improve North’s sustainability footprint follows a periodic review of the MyNorth Sustainable Portfolios in the September quarter, as North responds to growing demand for ESG solutions and recognition from advisers of the importance of aligning investment strategies with client beliefs.
One of the goals of the review has been to increase exposure to asset classes where our managers are able to exercise greater influence on companies to achieve more sustainable outcomes and better execute on its objectives.
As a result of these observations, AMP reduced the allocation to Alternatives across all three MyNorth risk profiles by between 6 and 8% during the September quarter. That allocation was equally distributed between Equities and Australian Fixed income, while maintaining a consistent allocation to growth and defensive assets within each portfolio.
AMP also made several manager changes - divesting the Vanguard Ethically Conscious International Shares (Unhedged) Fund, reducing exposure to the Impax Sustainable Leaders Fund and allocating that 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.
Recently, North was recognised by independent financial research consultancy SuitabilityHub as an industry leader in the areas of retirement, cashflow management and account management, backed by competitive platform fees and cash offering and rates2.
David Hutchison, AMP’s General Manager of Managed Portfolios and Investments said:
“We know there is strong demand from advisers and their clients for sustainable and ethics driven investment options, with research showing responsible investment now accounts for over one-third of the investment market in Australia.
“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.
“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 ten-fold in the space of four years, rising from $2 billion to $17.9 billion in the last quarter and continuing to grow in Q4.”
Edwina Maloney, AMP Group Executive, Platforms said:
“North was one of the first wrap platforms to offer sustainable managed portfolios in Australia, providing advisers and their clients with more investment options aligned with their values without compromising performance. We’re pleased to continue that tradition by enhancing our MyNorth Sustainable range to deliver greater diversification benefits and improved, sustainable outcomes for our members.
“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.
“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.”
1 The portfolios are managed via a joint effort between the Perpetual multi-asset and AMP Investments teams
2 From Values to Riches 2024: Responsible Investment Association Australasia. From-Values-to-Riches-2024_RIAA.pdf
3 2024 Platform Market Wrap Report: SuitabilityHub.
