AMP Capital NZ is pitching a revamped investment service to institutional clients that includes access to a broader range of external fund managers and products.
George Carter, AMP Capital NZ head of distribution, told Investment News NZ (IN NZ) while existing house products would form the core of its institutional offering, the firm now had the flexibility to add third-party funds and products if required under client investment plans.
Carter said the new model, dubbed ‘implemented asset management’ (IAM), would enable clients to mix-and-match AMP funds with external products – “including exchange-traded funds, for example”.
In a client note, AMP Capital says under IAM the manager could “tailor our asset management expertise to build a portfolio of specialist funds that is designed to meet [investors’] specific objectives”.
“Whilst we have significant in-house resource dedicated to managing numerous asset sectors,” the AMP note says, “we also acknowledge that due to the size and scale of global markets there are areas where we need to partner with other fund managers that complement our skills and capabilities in order to bring a full suite of high calibre domestic and global investment funds and tools to our local market in New Zealand.”
Carter said IAM differs from the traditional implemented investment consulting – as practised by the likes of Mercer and Russell – in that it’s not a pure fund-of-funds approach.
The AMP client note says IAM combines “different asset classes, fund managers and funds management styles in a single investment portfolio, while managing risk and volatility through strategic and dynamic asset allocation strategies”.
Since outsourcing a roughly $700 million active New Zealand equities portfolio to Salt Funds Management this March, AMP Capital NZ directly manages only local fixed income from its home base.
However, the group also invests via Australian-headquartered property funds and the New Zealand Multi-Asset Group (NZ MAG), headed by Peter Verhaart.
According to the AMP Capital website, NZ MAG “provides multi-manager investment solutions to New Zealand clients and leverages off the extensive resources of the Australian team”.
NZ MAG will manage the IAM approach, Carter told IN NZ.
In total, AMP Capital looks after about $19 billion on behalf of New Zealand investors.