AMP to lure advisers with lower fees and higher trail commissions

The new offering has many new features including being scalable from the adviser who specialises in regular, drip feed accumulation business through to advisers with more sophisticated, high-net worth clients who want to use a range of single sector funds.

AMP manager of investments and products, Richard Flinn, says compared to SIP the new range has lower management fees, but they pay advisers higher trail commissions.

While this seems somewhat contradictory, he says it is possible through cost savings in the way the funds are put together along with streamlining the commission structure.

Flinn says a key part of the strategy is its “core and explore” approach where there is a core portfolio of index funds at the heart of a portfolio and around that are actively managed funds which generate additional alpha – or value.