AMP has updated the guarantee menu on its North platform, putting in place three new funds under the North Guarantee.

The North Guarantee gives customers access to a diverse investment set, while providing capital protection over flexible term periods. 

The new funds, called the North Guardian range, will invest in a mix of Australian and international equities, fixed income and cash with underlying investment options which include growth, balanced and moderately defensive options. 

AMP’s Director, Platforms, Steve Burgess, said the changes enable customers to manage volatility within their portfolio while accessing the guarantee option at a reasonable price. 

“The North guarantee option is a popular choice for customers because it allows them to be invested in growth assets and provides protection so they won’t run out of money for their retirement. 

“The Guardian range is a great combination with the North Guarantee as it offers customers the flexibility to invest in a growth, balanced or moderately defensive option,” Mr Burgess said. 

Changes to pricing will make the guarantee more affordable for many customers, with the cost of the most popular guarantee option, the Protected Growth 10 year term, dropping from 1.8 per cent to 1.5 per cent per annum. 

The North guarantee was introduced in 2007 to allow investors to capitalise on financial market highs while also providing protection from market lows. The North guarantee was the first of its nature offered in the Australian market. 

The North Guardian range aims to provide a rate of investment growth similar to traditional diversified funds with comparable target asset allocations. The range manages the level of short-term fluctuations across different market conditions by increasing or decreasing their exposure to shares based on estimated short-term market volatility. 

The three new funds will be the only funds available for new customers seeking a guarantee. 

The previous guarantee options remain open to existing customers.