The search for yield has been a blessing for AMP’s Advantage Funds, which have grown to more than $2 billion in assets under management in less than two years since launching.
The funds, available to advisers and clients through AMP’s flagship MyNorth wrap platform, provide access to 31 wholesale managed funds and cover all major asset classes.
“The continuing strong demand for the Advantage Fund range reflects the quality of asset managers, diversity in investment options, and the low cost at which we’re able to provide the funds to advisers and their clients, including up to a 25 basis point discount against the equivalent wholesale fund management fees,” AMP managing director wealth products and platforms Rod Finch said.
“Advantage Funds are an important part of our flagship MyNorth wrap investment offer, which we’re continuing to strengthen through our growing managed portfolio range.”
AMP launched a new MyNorth Partnered Managed Portfolios offer in July this year, following a reduction in fees for more than 87,000 MyNorth clients and families.
While fixed interest, Australian equities and international equities remain the dominant asset classes for clients and advisers, exposure to both fixed interest and international equities reduced over the course of the last financial year.
Lakshman Anantakrishnan, chief investment officer of AMP’s Australian Wealth Management business, believes the trend is likely driven by record low rates.
“While fixed income remains the dominant investment class, we’ve seen a shift to higher income-generating assets such as infrastructure and property as clients seek greater yield," Mr Anantakrishnan said.
“The same drivers may have also led to a greater allocation to Australian equities, with domestic markets continuing to provide better yield than offshore markets.
“The small fall in international equities and movement of funds to domestic equities may also reflect growing uncertainty in global markets.”
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