AMP Managed Funds Review
We review AMP's selection of managed funds, with fees between 0.78% and 0.81% per year and no minimum investment. We look at the alternatives, must-know facts and frequently asked questions.
Updated 5 December 2024
Summary of AMP's Managed Funds selection:
Beyond the above funds, AMP also offers:
Must-Know Specs:
Our View:
Our Review In this guide, we outline what AMP is. Specifically, the managed funds they offer to New Zealand-based investors, what index funds are and how they're different from other funds, and looking at alternatives and the level of fees involved.
Please note: MoneyHub is not a financial adviser, and this guide has been published to explain the fundamentals of investment and outline the pros and cons of AMP's managed funds as an investment opportunity.
Related guides:
Summary of AMP's Managed Funds selection:
- AMP offers five sustainably invested funds, all managed by investing specialist BlackRock, which managed around $40 billion of KiwiSaver funds as of September 2024 (shared between ANZ, ASB and AMP per this article in Investment News).
- AMP's managed funds consist of five index-tracking funds with specific investment profiles:
- The AMP Conservative Managed Fund (launched in May 2022) invests in cash and cash equivalents and interest-generating assets.
- The AMP Balanced Managed Fund (launched in May 2022) invests its money at around 60% equities and 40% fixed interest.
- The AMP Growth Managed Fund (launched in May 2022) invests 98%+ of its money into growth assets, such as shares and listed property.
- The AMP Aggressive Managed Fund (launched in October 2024) invests most of its money into growth assets, such as shares.
- The AMP International Shares Managed Fund (launched in October 2024) invests in global markets, focusing on shares.
Beyond the above funds, AMP also offers:
- The AMP KiwiSaver Scheme offers the choice of many funds - our extensive review explains what's on offer.
- Term deposits are managed by Heartland and are outlined in our term deposit guide.
- AMP explains its UK pension transfer service (QROPS) on its website. Our guide to UK pension transfers has more information.
Must-Know Specs:
- AMP has historically used AMP Capital to manage its investment funds, but in 2021 it moved its investment management to BlackRock. The move to BlackRock aims to maximise market-tracking returns while minimising fees, leveraging BlackRock’s position as one of the world’s leading asset managers.
- With fees around 0.78% to 0.81% p.a., AMP's managed funds charge around 2-3 times similar funds offered by low-fee index managers such as Simplicity and Kernel, who charge some of the lowest fees in New Zealand. However, unlike Kernel, AMP does not charge a monthly investor/membership fee once your balance increases over a certain level. As an AMP Managed Funds customer you will also have access to NZ-based contact centres and the AMP adviser team.
- There is no minimum dollar amount to invest in the AMP funds, and investors can buy into funds directly or via a financial adviser. The ongoing fees are the same.
- Recent returns, fees and a description are published monthly and are available on the AMP website.
Our View:
- AMP has overhauled its managed funds by moving to BlackRock and dropping the fees. This is a welcome change, and challenges established funds managed by banks. The Aggressive and International Shares funds launch in October 2024 shows AMP's commitment to expanding its high-growth offering. By 30 September 2024, before the launch of these three funds, AMP had around $33m of investor funds (with their Growth fund being the most invested in).
- We expect AMP to launch new funds, products and features progressively and will update this guide as these changes go live.
- We are not a fan of high managed fund fees – some institutions charge as much as 3% on your investment yearly to look after your savings while you take all the risk on what they invest in. In the last couple of years, index funds have become available to the average Kiwi investor, and AMP focuses on lower-cost funds. However, their offering remains expensive when compared to alternatives such as Simplicity and Kernel, among others.
Our Review In this guide, we outline what AMP is. Specifically, the managed funds they offer to New Zealand-based investors, what index funds are and how they're different from other funds, and looking at alternatives and the level of fees involved.
- The Specs of AMP
- Who is AMP Suited to?
- AMP's Competition – Kernel vs Simplicity vs SmartShares vs InvestNow vs Sharesies
- Must-Know Facts About AMP's Managed Funds
- Our Conclusion
- Frequently Asked Questions
Please note: MoneyHub is not a financial adviser, and this guide has been published to explain the fundamentals of investment and outline the pros and cons of AMP's managed funds as an investment opportunity.
Related guides:
- Want to know how to trade or invest in the NZX? Our NZX in a Nutshell guide explains what you need to know.
- Looking for an investing platform that offers other funds? Our reviews of InvestNow have you covered.
The Specs of AMP
- AMP is a long-established financial services provider in New Zealand, operating since the 1800s and offering a wide range of KiwiSaver, managed funds, and investment options.
- Unlike Sharesies or InvestNow, which allow access to third-party funds, AMP only offers AMP-branded funds in it’s AMP Managed Fund Scheme, but does offer third-party funds such as Milford and SuperLife in it’s KiwiSaver Scheme.
- An independent custodian holds all underlying investments securely, ensuring your money remains protected in the unlikely event of issues with AMP.
- Investing in AMP Managed funds means gaining exposure to New Zealand and international markets. You can invest in AMP Managed funds directly through their platform or through a financial advisor. AMP also offers term deposits.
Who can invest in AMP?
- AMP makes it clear - people aged 18 and over and who are either a New Zealand citizen or live (or normally live) in New Zealand are eligible to open an AMP Managed Funds account.
- AMP Managed Funds are only offered to individual investors, meaning you cannot open an account with your partner, child or family trust.
Who is AMP Suited to?
Best For:
Not suitable for:
Know This:
Want to know how to trade or invest in the NZX? Our NZX in a Nutshell guide explains what you need to know.
- Short-term investors looking for fund options to generate a return within 0-3 years.
- Medium – term investors looking to invest their portfolio.
- Long-term focused investors looking for stability and growth that is passive with management fees lower than funds actively managed.
- With five funds to choose from, the funds appeal to those looking for high growth, moderate and/or conservative.
- Investors looking for index funds without a sector preference.
- Ethical investors - AMP's funds follow a sustainable investment policy, outlined on their website.
- Ultimately, with any AMP fund, investments anticipate international sharemarkets rising over time while being diversified enough to avoid losing money if one or two shares flounder.
Not suitable for:
- Investors looking to make individual investments in specific companies, or investors seeking short-term buying and selling. Index funds are not 'trading' products by nature.
- Anyone looking for ultra-low fee index funds; with fees around 0.78% to 0.81% p.a., AMP's managed funds charge around 2-3 times similar funds offered by low-fee index managers such as Simplicity and Kernel.
Know This:
- The minimum investment is $1 and there are no monthly platform fees for any investors. You can set up regular payments (weekly, fortnightly, 4 weekly, monthly, annually) to suit you and withdraw when you need.
- There are no transaction fees, meaning you don’t get charged every time you buy and sell units in a fund. This means every dollar you invest goes directly to your AMP fund(s).
Want to know how to trade or invest in the NZX? Our NZX in a Nutshell guide explains what you need to know.
AMP's Competition – Kernel vs Simplicity vs SmartShares vs InvestNow vs Sharesies
Simplicity and Kernel both other fees for around 0.25% p.a. on their index funds, making them significantly cheaper than AMP's offering (charging fees at around 0.78% to 0.81% p.a.).
InvestNow, Sharesies and Smartshares are other options for index fund investing that should be considered before making any investment.
Simplicity's 0.10% p.a. Management Fee Alternative - NZ Share or Bonds Fund
InvestNow, Sharesies and Smartshares are other options for index fund investing that should be considered before making any investment.
Simplicity's 0.10% p.a. Management Fee Alternative - NZ Share or Bonds Fund
- Simplicity offers its NZ Share fund, which provides a 'top 40' of NZ shares, charging a super low 0.10% p.a. management fee.
- However, the minimum investment in Simplicity's NZ Share fund is $1,000. If you're looking for an NZ-orientated index fund and have $1,000 to invest, the NZ Share fund may be of interest.
- Other funds offered by InvestNow and Smartshares are also worth considering, as all platforms, alongside Kernel, commit to charging low fees.
Must-Know Facts About AMP's Managed Funds
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AMP funds has a digital focusAMP's managed funds stand out for their focus on digital tools, offering a seamless experience through the MyAMP app. Investors can easily view their balance, top-up, check returns, or withdraw funds with just a few taps. This makes managing investments simple and convenient.
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AMP offers New Zealand and overseas-specific investment diversificationAn investment in any of the AMP funds goes into a number of companies, so if one doesn't perform as expected, the strength of other companies will balance out low-performing investments. For example, the Growth Managed fund invested in dozens of companies as of 30 September 2024. Examples include:
Our View: AMP's funds are suitable for short, medium and long-term investors. Offering well-diversified funds including the Growth, International Shares, Aggressive, Balanced and Conservative funds, investors have sufficient choice. |
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AMP’s funds are PIE fundsAMP’s investment funds are PIE funds (like its KiwiSaver funds). This means any investor will pay income tax according to their Prescribed Investor Rate (which is either 10.5%, 17.5% or 28%). That can add up over time, especially when investing at a young age.
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You can make automatic contributionsContributions can be made by setting up a regular or one-off direct debit through MyAMP. This makes it easy to keep investing without having to make manual payments and transfers.
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The composition and performance of AMP funds are 100% transparentAMP exhaustively lists what investments comprise each fund, as well as the percentage weightings. AMP also reports return on investments in plain English, with detailed data available since fund launch
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The dividends your fund(s) receive are reinvested, meaning more cash is invested on your behalf and gains are compoundedMany of the investments held in AMP funds pay regular dividends. These cash payments represent the profits from companies returning them to the shareholders, i.e., you, by way of adding cash into the fund. This cash is then reinvested in line with the investing strategy, helping you to grow your returns.
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AMP offers a proven investment model by investing in index fundsIndex funds historically outperform managed funds. According to SPIVA, the S&P 500 (an American sharemarket index) outperformed more than 89% of all active funds over a 15-year period. Given the low fees an index fund charges and the reliability in outperforming active funds, it's a relatively conservative approach to investment for your retirement.
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AMP's investment partner, BlackRock, has extensive expertise and is highly regardedBlackRock is the largest asset manager in the world, with over USD 9 trillion under management globally. By partnering with BlackRock, AMP leverages this scale and expertise for efficient index tracking, benefiting investors with potentially better alignment to global market performance.
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AMP does not offer Actively-Managed FundsAMP's managed funds are strictly passive (index-tracking), unlike some competitors that also offer actively managed options. This focus ensures that fees remain predictable, but it also means there is no opportunity to outperform the market significantly.
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AMP has innovated with new fundsFor example, the new AMP International Shares Managed Fund provides exposure to hundreds of global companies, reducing country-specific risk. The fund is designed to capture growth in developed markets while maintaining a diversified, cost-efficient portfolio structure.
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Our Conclusion
- AMP Managed Funds offers various index-tracking options, catering to investors with different risk appetites and time horizons.
- The transition to BlackRock in 2021 has introduced cost savings and access to high-quality global investment management. Additionally, AMP's inclusion of sustainable and ethical investing policy aligns with most of the investor preferences of many New Zealanders.
- However, the fee structure (0.78%-0.81%) places AMP at a disadvantage compared to competitors like Simplicity and Kernel, which charge significantly lower fees.
These competitors offer a more compelling proposition for cost-sensitive investors focused on index funds. - AMP does not charge additional monthly platform fees, which is an advantage over Kernel for investors with large balances.
- Overall, AMP Managed Funds are suitable for investors who value a blend of New Zealand and international exposure, ethical investment policies, and transparent reporting. However, those seeking the lowest fees or access to a broader range of funds should evaluate alternatives like Kernel, Simplicity, or InvestNow, given the low-fee opportunities.
Frequently Asked Questions
What are AMP's Managed Funds, and how do they work?
AMP Managed Funds are index-tracking funds that allow investors to pool their money for investment in diversified portfolios. Our guide to index funds explains more. These funds are managed by BlackRock, focusing on specific asset allocations, such as equities, fixed interest, and international shares. The funds are designed for long-term growth and diversification.
What are the fees for investing in AMP Managed Funds?
The management fees range between 0.78% and 0.81% per year. These fees are higher than competitors like Simplicity and Kernel, which charge as low as 0.25% p.a. However, AMP does not charge monthly platform fees (unlike Kernel, which does for larger account balances).
How do AMP's ethical investment policies work?
AMP Managed Funds adhere to sustainable investment principles. This means the funds avoid investing in industries such as tobacco, controversial weapons, and fossil fuels. The ethical investment policy is aligned with modern ESG (Environmental, Social, and Governance) standards.
Are AMP Managed Funds PIE funds, and what does this mean for me?
Yes, AMP Managed Funds are PIE funds. This means your investment income is taxed at your Prescribed Investor Rate (PIR), which can be lower than your standard income tax rate. This tax advantage can help reduce your overall tax liability on investment returns.
What are the alternatives to AMP Managed Funds?
Low-cost competitors like Simplicity and Kernel offer index funds with fees as low as 0.25% per annum. Platforms like InvestNow and Sharesies provide access to third-party funds, enabling investors to diversify their portfolios further and explore more fee-friendly options.
How do AMP Managed Funds reinvest dividends?
Any dividends received from companies in the fund's portfolio are automatically reinvested. This helps investors compound their returns over time, maximizing the potential for long-term growth.
Can I invest directly with AMP, or need a financial adviser?
You can invest in AMP Managed Funds directly through their platform.
Are AMP Managed Funds suitable for short-term investments?
While AMP offers funds catering to different investment horizons, index funds are generally designed for medium to long-term growth. Investors seeking short-term gains may find AMP's funds less suitable.
How transparent is AMP with fund performance?
AMP provides detailed reporting for its managed funds, including performance metrics, asset allocations, and individual stock holdings. These are updated monthly on their website, ensuring transparency for investors.
What happens if AMP or BlackRock faces financial difficulties?
All investments in AMP Managed Funds are held securely by an independent custodian. This ensures that your money is protected even if AMP or BlackRock encounters financial issues.