19 November 2004
AMP launches industry first – an investment programme that thinks for you
AMP has developed an industry first – a flexible investment programme that automatically changes your investment risk
over time to suit your stage in life.
Called Lifesteps, AMP’s new investment programme recognises that the retirement saver can tolerate higher investment
risk in the early stages of their working life in exchange for higher expected average investment returns, but as they
get older that appetite for risk decreases.
How Lifesteps works: When an investor is younger, Lifesteps gives greater exposure to investments that have a potential
for growth. As the investor gets older, the programme automatically reduces the investor’s risk by increasing exposure
to income assets. That gives the investor greater stability – and peace of mind – in the years before retirement.
When an investor enters the Lifesteps Investment Programme, their savings are invested in one of six investment
portfolios depending on their age (see table below). As they reach a birthday that corresponds with the next Lifesteps
portfolio, their savings are automatically reinvested in that portfolio.
“Essentially, Lifesteps does all the hard work for you so that you don’t need to continually reassess your investment
strategy,” says Roger Perry, General Manager Savings & Investments, AMP Financial Services, “and you can be safe in the knowledge that it will automatically keep an eye on
your level of risk and keep your investment perfectly suited to your stage in life.
“It recognises every retirement saver’s biggest fear – that there is less time to recover from any short-term losses in
the years leading up to retirement when you will really need to call on that retirement income.”
The Lifesteps programme is part of a new Savings & Investment product suite being launched this week by AMP.
The new product suite is made up of a Classic range of investment products, designed for regular savings and those who
prefer their investments all in one easy package, as well as a Premium range for those investors with larger amounts who
prefer a more tailored solution. The range was designed to provide an investment product suite that is simpler and more
transparent for consumers.
The new AMP Savings & Investments product suite also provides a wide range of possibilities to suit different investors. For this, AMP has
chosen the best fund mixes and fund managers for the investor, using independent advice from Mercer Consulting.
“A good example of how the Classic range makes things simpler for the average investor is the ability to name different
investment accounts in line with different investment goals,” says Mr Perry. “So, if it’s a house deposit you’re saving
for, or your children’s education, it’s easier to track that investment in line with the goal.
“Ultimately, the range has been designed to provide consumers with a strong savings and investment proposition that
combines a smart structure with competitive fees,” says Mr Perry. “It can’t get much simpler than that.”
ENDS