Managed portfolios offer growing faster than industry[1]
Demand for ESG-based investments continues to rise
North, one of Australia’s leading wrap investment platforms, has seen assets under management (AUM) in its managed portfolio range grow by 420 per cent in the past two years, passing $9 billion. Managed portfolios now make up approximately 15 per cent of North’s total AUM, which was $62.8 billion at 31 March 2023.
The growth in North’s managed portfolio AUM is faster than the wider market1, with the platform now offering advisers and their clients 95 high-quality portfolios across multiple asset classes and investment strategies.
This includes North’s IndexPlus Managed Portfolios and the iShares Enhanced Strategic International Managed Portfolio, which were both recently awarded a four-star Superior rating by respected independent researcher, SQM Research.
ESG-based investment demand
While diversified risk-based portfolios continue to make up the majority of AUM held in North’s managed portfolios, there is increasing interest in the platform’s environment, social and governance (ESG) based investment options.
The number of clients invested in North’s ESG-based managed portfolios increased by more than 240 per cent in the 24 months to 28 February 2022, with ESG-based AUM on the platform growing by more than 300 per cent over the same period. Across the platform, North has added 58 ESG-based investment options in the past year.
The MyNorth Sustainable Managed Portfolio range recently retained its four star Superior Rating from SQM Research. Launched in 2020, the portfolio’s investment options are selected using an ESG-based framework and values-based principles.
‘A guide to ESG Investing’
To help advisers guide their clients through the ESG-based investment process, North has partnered with the Responsible Investment Association Australasia (RIAA) to develop A guide to ESG Investing.
The whitepaper, released earlier this year, provides insight into the latest trends and developments in the industry, while addressing some of the common misconceptions about ESG-based investing. The paper is available here.
Edwina Maloney, AMP Director of Platforms, said:
“The exceptional growth and uptake of North’s managed portfolios reflects the considerable benefits they provide advisers and their clients, including low-cost access to world class investment managers, and efficient and transparent reporting. They also free up time for advisers to focus more time on what they do best – provide advice.
“As we work with advisers to continue to strengthen North’s managed portfolio offer, we also recognise that four out of five Australians now expect their retirement savings to be invested responsibly and ethically[2].
“Our Guide to ESG Investing is helping inform advisers and clients about ESG-based investing so they can take full advantage of North’s growing ESG-based investment choice.”
[1] https://imap.asn.au/publications/perspectives/114-perspectives-autumn-2023/1117-imap-fumcensus-dec-2022.html
[2] Responsible Investment Association Australasia, From Values to Riches 2022: Charting consumer expectations and demand for responsible investing in Australia, pg. 8.
