AMP Capital Investors' multi-asset group (AMP MAG) is exploring the potential of offering asset allocation advice services to superannuation funds for investment portfolios that are not managed by the group.
"If you look at the institutional market here in Australia there is a trend that we refer to as internalisation - there has been a bit of consolidation going on. Some of the big funds are getting bigger and are employing their own teams," AMP Capital head of MAG David Kiddie said.
"Some of those clients might look at us and say: 'Well, we don't need to use you as the multi-asset group, because we can do it ourselves'. We would say: 'Now hang on a bit, we can work together from a perspective of thought leadership and collaboratively develop better outcomes,'" Kiddie said.
"Does that mean we might manage the entire portfolio? Well, maybe not. I would be very happy to meet up with clients and with our internal teams, talking about the optimal asset allocation for them."
Kiddie also saw a demand for these asset allocation services from funds outside the traditional client base.
"If we go down the size curve, there are a number of smaller and medium-sized firms and clients here that might have been overlooked by some of the larger asset management firms," Kiddie said.
"Trustees are probably struggling a bit in the same way I experienced back in Europe, just in terms of time and regulatory pressure," he said.
"They might not be getting the optimal advice, and I'm very excited to work with those kinds of clients."
But Kiddie said he would not go as far as becoming a consultant and having clients to which the group provides only advice services.
"You might sit down with a client who says 'we want to do all of the international shares ourselves, passively. We are happy for you to advise on the asset allocation weighting and we are happy for you to manage the alternatives piece,'" Kiddie said.
