AMP Advice has engaged BlackRock Australia and Lonsec to introduce a new category of tailored managed portfolio solutions, making it accessible to more advice practices – a first of its kind in the Australian market.

Advisers will have access to portfolio performance tracking and dedicated content support allowing them to monitor their holdings, performance, and access trade notices and market commentaries that can be white-labelled for their client base1

The portfolios use BlackRock’s multi-asset investment expertise and global custom managed portfolio technology, together with Lonsec’s investment manager research and manager selection capabilities to deliver portfolio customisation at scale to advice practices.

The solution is underpinned by BlackRock’s global managed portfolio customisation technology, which is only currently available in the US.  AMP Advice is able to create a suite of managed portfolios that make it easy and cost-efficient for AMP Advice practices to create tailored portfolios.

A new era in managed portfolios

North has seen a 50% increase in advisers using MyNorth Managed Portfolios over the last two years². And according to a report by independent financial services research firm Investment Trends, managed account solutions are growing in popularity in Australia with 56% of advisers surveyed last year saying they had used them for their client investments, up from 16% in 2012³

However, some advice practices have been unable to adopt managed accounts, where off-the-shelf solutions may not be suitable due to manager incumbency or preferences within the existing portfolios, and the lack of scale required to access fully tailored managed portfolios.

Thanks to this new innovation, AMP Advice is helping both practices within its network, as well as the increasing number of advisers who operate under their own AFSL to take full advantage of a pioneering managed portfolio solution – one that offers customisation to suit a practice’s individual requirements and investment philosophy.

Exclusive access through North and AMP 

Advice practices, both through the AMP Advice network and other eligible practices, can access the new offering directly and exclusively through AMP’s North platform.

It will also be made available to self-licensed practices through Jigsaw Advice Solutions, AMP Advice’s dedicated service for independent financial advisers and self-licensees⁴

Currently, North has the fastest growing managed portfolio offering in the market – approaching $15 billion in funds under management, up from $2 billion in 2021.  It was recently awarded the Most Improved Platform and Best Retirement Solution by Investment Trends⁵ reflecting how North’s innovative retirement offer and adviser-driven continual improvement program are creating better outcomes for advisers and their clients.

The offering further builds on North’s existing stable of more than 380 portfolios with leading asset managers, covering numerous asset classes and investment strategies.

Matt Lawler, AMP Group Executive, Advice said:

“We’re excited to be launching a unique entry point into managed accounts for advice practices large and small that will for the first time bridge the gap between off-the-shelf and fully tailored private label managed account solutions.”

“Through this innovative new offer, AMP-aligned practices as well as smaller eligible practices through Jigsaw will be able to create tailored, high-quality investment portfolios for their clients which are governed, managed and administered by world class asset managers utilising world class tech. We recognise the value managed portfolios are providing advisers and their clients, but that many smaller advice practices don’t have the required scale to benefit from them. That’s why we’ve partnered with BlackRock and Lonsec to pave the way forward with an industry-leading solution that addresses many of the traditional barriers to adoption – including personalisation, incumbency and scale.”

Edwina Maloney, AMP Group Executive, Platforms said:

“At North, we’re focused on helping practices deliver great advice to their clients more efficiently. At the heart of this is our commitment to expand and strengthen our managed portfolio offers, including the ability for IFAs and larger advice practices to tailor portfolios for their clients.”

“That’s why we’re thrilled to be the first platform in Australia to offer these new portfolios, allowing more advice practices to grow their businesses, improve end client outcomes, and efficiently service more clients.”

“Our managed portfolios continue to be the fastest growing in market thanks to the support from our advisers, asset consultants and fund managers we work with. We have one of the most flexible offers available and we’re continuing to build our unique badged portfolio solution, adding a greater degree of flexibility to help a broader range of practices.”

Katie Petering, Head of Multi-Asset Investment Strategy, BlackRock Australasia said:

“As pioneers of managed portfolios in the Australian market, we are excited to work with AMP and Lonsec to build a new model portfolio solution that will enhance how AMP Advice and North serves advisers. By drawing on the breadth of our global platform, Australia will be the first market outside of the US to benefit from BlackRock’s global model portfolio customisation technology.”

“This reinforces our commitment to continuously look for ways to introduce innovation in a sophisticated market like Australia, with the primary goal of democratising access to model portfolios for a broader base of advice practices.”

Michael Wright, Lonsec Group Chief Executive Officer said:

“We are thrilled to work with AMP and BlackRock to bring the next generation of managed accounts to market. This new managed portfolio solution will empower licensees like AMP Advice to create a suite of tailored portfolios that can allow certain customisations within the scheme for aligned practices – a first-of-its-kind breakthrough in the Australian wealth market. We expect this new managed portfolio solution will enable more advice practices to be able to reap the benefits of managed accounts for their businesses and clients.”

^{[1] Available through BlackRock’s Model Evaluator Portal}

^{[2] Source: North data}

^{[3] Source: January 2023 Managed Accounts Report by Investment Trends}

^{[4] Included as part of a practice’s Jigsaw licencing package, at no additional cost}

^{[5] Source: 2023 Platform Competitive Analysis and Benchmarking Report by Investment Trends}