New MyNorth Guarantees

Clients approaching retirement are often concerned about market volatility and how major market downturns could impact their standard of living. MyNorth Guarantees can help safeguard your clients' wealth and we have introduced new guarantees that are more flexible and easier to use. They will be available from a MyNorth Super, Pension and Investment account. Here’s a snapshot on what’s new (more information is in the MyNorth Super and Pension Guarantee PDS - Part B and MyNorth Investment Guarantee PDS).

5-year and 10-year terms

We’ve simplified the offer so that clients can now choose to guarantee their savings over a 5-year or 10-year term. Multiple guarantees with different maturities can also be purchased within the same account.

Partially guaranteed accounts

Clients can hold guaranteed and non-guaranteed investments within the same MyNorth account. This makes it easier to manage your client’s investments and pension payments, and produce consolidated reporting. 

Optional features to keep costs down

Clients can add features such as growth lock-ins for the 5-year guarantee and vesting for the 10 year-guarantee (additional fees apply).

High exposure to growth assets

Savings are invested in the MyNorth Guardian Max 85 Fund for the 5-year term and the MyNorth Guardian Max 100 Fund for the 10-year term.

Early access to guaranteed investment

Clients can access the guaranteed investment value before the end of the term. Partial sell downs will reduce the protected balance on a proportional basis.

Distribution changes

Any income distribution generated by the MyNorth Guardian Funds will be reinvested back into the funds. 

At a glance

 

 

5-year guarantees

  10-year guarantees
Protection of initial investment
  ✓  ✓
Early access
 ✓

 ✓
Growth lock-in
 Optional ✓
Vesting
 Not available Optional
Guarantee fees(i)

Calculated on protected balance

1.25% pa

1.95% pa with optional growth lock-in

1.45% pa 

1.85% pa with optional vesting
Savings invested in(ii)
 MyNorth Guardian Max 85 Fund MyNorth Guardian Max 100 Fund
Investment management costs 
 0.60% pa 0.63% pa
Income
 Automatically reinvested into existing units Automatically reinvested into existing units
Investment objective
 To provide moderate growth over the medium to long term, with moderate fluctuations in value likely. To provide moderate to high growth over the long term, with larger fluctuations in value likely.
Investment strategy
 To primarily invest in a diversified mix of defensive and growth assets, with a long-term average allocation to equities of approximately 70%. To primarily invest in a diversified mix of defensive and growth assets, with a long-term average allocation to equities of approximately 85%.
Investment range
 This fund will rebalance allocations between equities and cash in response to market volatility. Equity exposure has a floor of 11% and is capped at 85%. This fund will rebalance allocations between equities and cash in response to market volatility. Equity exposure has a floor of 14% and is capped at 100%.
Asset class allocation – long term target 
  • Australian shares - 35%
  • International shares - 35%
  • Australian fixed income - 12%
  • International fixed income - 5%
  • Cash - 13%
  • Australian shares - 42%
  • International shares - 43%
  • Australian fixed income - 1%
  • International fixed income - 1%
  • Cash - 13%


Key considerations for MyNorth Guarantees

(i) Guarantee fees are deducted from the cash account linked to the guarantee. Product administration fees, taxes and account fees may also apply – refer to the relevant PDS for more information. 
(ii) The actual asset allocation (for equities and cash) for the MyNorth Guardian Funds can vary at any point in time within the above pre-determined ranges due to market volatility, as per the investment objective of the funds. AMP also reserves the right to review the investment strategy limits annually, we’ll let you know of any changes in advance. Refer to the MyNorth Guardian Investment Options PDS for more information.

How MyNorth Guarantees work

5-year guarantees

At the end of the 5-year term, your client will receive the value of their investment in the MyNorth Guardian Max 85 Fund or their initial investment amount (protected balance), whichever is higher (see key considerations)


With optional growth lock-in 

If growth lock-ins are chosen by your client (additional costs apply), any growth achieved at their guarantee anniversary date in the MyNorth Guardian Max 85 Fund will lock in a new protected balance. At the end of the 5-year term, the client will receive the value of their investment in the MyNorth Guardian Max 85 Fund or their protected balance, whichever is higher.

10-year guarantees

At the end of the 10-year term, your client will receive the value of their investment in the MyNorth Guardian Max 100 Fund or their protected balance, whichever is higher (see key considerations). Any growth achieved at their guarantee anniversary date in the fund will lock in a new protected balance. 

With optional vesting 

If vesting is chosen by the client (additional costs apply), any early withdrawal will include the investment value of the MyNorth Guardian Max 100 Fund and part of the protected value that is in excess of this. This provides them some benefit of the guarantee, even if the product is not held for the full 10-year term, depending on how long they have held the MyNorth Guarantee.

Here's an example of how the 10-year guarantee with vesting works



Things you need to know

This illustration does not account for the guarantee fees or tax liabilities attributed from the guaranteed investment over the life of the guarantee. The guarantee fee for the 10-year guarantee with vesting feature is 1.85%pa, based on the protected balance. While this hypothetical scenario illustrates a guarantee benefit payment at the end of the term, there are circumstances where the investment value will be greater than the protected balance at the end of the term and a guarantee benefit is not payable.  This is for illustrative purposes only and not an indicator of actual performance or investment returns

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Important information

This page has been provided by NMMT Limited ABN 42 058 835 573, AFSL 234653 (NMMT). It’s for professional adviser use only and must not be distributed or made available to retail clients. It contains general advice only and  doesn’t considered any person’s personal goals, financial situation or needs. A person should consider whether this information is appropriate for them before making any decisions. Visit northonline.com.au to obtain the disclosure documents for MyNorth Super and Pension, MyNorth Investment Guarantee and the MyNorth Investment IDPS Guide. You should also be aware that past performance is no guarantee of future performance.

You can read the AMP Financial Services Guide online for more information, including the fees and benefits that AMP companies and their representatives may receive in relation to products and services provided. You can also ask us for a hard copy on Contact us on 1800 667 841 for a copy.

MyNorth is a trademark registered to NMMT. MyNorth Super and Pension is issued by N.M. Superannuation Pty Limited (ABN 31 008 428 322, AFSL 234654). MyNorth Investment is operated by NMMT. MyNorth Investment Guarantee is issued by National Mutual Funds Management Limited ABN 32 006 787 720, AFS Licence No. 234652.