AMP’s $5 billion Signature Super corporate master trust has culled $60 million worth of single-manager investment options with ING Investment Management, Barclays Global Investors, and BT Investment Management, transferring members into its own Future Directions funds.
On September 14, AMP terminated three of its balanced investment options: the ING Managed Growth ($28.53 million); the Barclays Diversified Growth ($27.14 million); and the BT Active Balanced ($3.25 million). The members in these options were moved to AMP’s own Future Directions Balanced option, which at June 30 managed $2.84 billion.
The conservative Barclays Diversified Stable option ($0.53 million) was also terminated, and members moved to AMP’s $55.10 million Future Directions Conservative option.
A spokeswoman at AMP said the decision to cut the external managers followed a regular review conducted to ensure the investment options were delivering the best value to members. As a result of the switch, members now pay lower management fees; the managers of the balanced options each charged 75 basis points per annum, whereas the AMP option will charge 60 bps. Similarly in the conservative option, the management fee will be reduced from 65 bps to 50 bps.
The Future Directions funds are composed of a number of underlying managers, which AMP believes provides greater diversity than a single manager.
The AMP spokeswoman said removing these options reflected what customers were demanding: “More multi-manager funds rather than single-manager funds.
"The tendency is to want more diversity, more underlying managers,” she said. “Future Directions funds are good performers with lower fees.”
Signature has about 83,000 members, which represents about 98 per cent of AMP’s superannuation customers.