AMP Capital to offer direct investment

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AMP Capital is opening its funds directly to retail investors.

Wednesday, March 16th 2016, 6:00AM 4 Comments

by Susan Edmunds

Investors will soon be able to invest directly into AMP Capital’s full range of retail funds through a dedicated direct investment platform.

In material distributed to its client base, AMP Capital said the previous minimum investment of $100,000 had made it hard for smaller investors to access its products.

“At the same time, we have seen a steady increase in the number of investors who want to ‘do it themselves’ and invest directly. Additionally, ongoing regulatory changes have also driven an increased interest in direct investment.”

AMP Capital’s associate director David Buell said it would appeal to investors who did not want to invest via a financial adviser or any other intermediary.

He said the knowledge AMP Capital had acquired in the Australian self-managed super fund market would pay dividends.

The platform would not be roboadvice but would be non-advised and only suit those who did not want personalised financial advice.

Adviser Robert Oddy said it was likely offering such as AMP’s new service would become more prevalent.

“Investor and saver direct access via the internet to products issued by the likes of AMP and its competitors, both within NZ and offshore, is most certainly going to expand,” he said.

“As has been the case with air travel, increased competition will force lower producer fees and improved choices - great outcomes for investors and savers. 

“Producers who cannot foresee coming price pressures may well join the dinosaurs down into the valley of extinction.  It was surprising to note that AMP has not reduced what appear to be high fees for this 'sales-only' retail direct product - at least by an amount usually paid to its advisers.  Logically, consumers who do not want advice would likely expect discounted fees to be offered for what is a 'sales-only' activity.”

AMP Capital has been approached for comment.  A new website for the service is believed to be set to launch after Easter.

Tags: AMP Capital investment

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