Delivering $20 Million in Cost Savings for AMP Capital through Portfolio Optimisation & Investment Cost Harmonisation
As part of a strategic initiative to improve investment efficiency and reduce costs, AMP Capital sought to optimise its portfolio and manager allocations across a range of funds. The goal was to identify opportunities to harmonise investment mandates, renegotiate management fees, and transition assets in a way that would maximise cost savings while maintaining investment performance and member equity. Through detailed analysis, structured program management, and effective stakeholder engagement, we played a pivotal role in delivering $20 million in annual cost savings while executing a seamless transition of assets.
Client Testimony
""
Integrated Advisory's ability to combine rigorous analysis, expert program management, and structured execution enabled AMP Capital to realise significant cost efficiencies while maintaining investment integrity. This success underscores our expertise in delivering complex investment transitions, portfolio optimisation, and cost management solutions for leading asset managers.
Key Challenges
- Complex Portfolio Structures: AMP Capital managed multiple funds with varied mandates, fee structures, and external manager relationships. Identifying optimal reallocation strategies required extensive data analysis.
- Investment Manager Negotiations: Engaging with external investment managers to renegotiate fees, consolidate mandates, or transition to lower-cost structures while maintaining strong investment outcomes.
- Stakeholder Coordination: Aligning portfolio managers, investment teams, and external stakeholders to ensure buy-in and a smooth implementation process.
- Large-Scale Asset Transitions: Executing structured transitions across a range of asset classes to align with the revised portfolio and cost structures without incurring undue market impact or transaction costs.
Solution Highlights
- Comprehensive Portfolio & Cost Analysis: Conducted in-depth data-driven analysis to identify inefficiencies in portfolio allocations, duplications across investment mandates, and opportunities for fee reduction.
- Investment Manager Consultation & Negotiation: Led structured engagement with external fund managers to negotiate lower fees, consolidate mandates, and restructure allocations to maximise cost efficiencies.
- Program Management & Governance: Established clear program governance frameworks, ensuring alignment with AMP Capital’s strategic objectives, risk controls, and regulatory requirements.
- Large-Scale Asset Transition Execution: Designed and managed the implementation of structured asset transitions, ensuring seamless execution while mitigating operational and market risks.
- Stakeholder Engagement & Change Management: Worked closely with portfolio managers, investment committees, and operational teams to ensure smooth adoption of the new portfolio structure and cost framework.
Outcome
- $20 Million in Annualized Cost Savings – Achieved through portfolio realignment, mandate consolidation, and renegotiation of investment management fees.
- Optimised Portfolio Structure – Improved fund efficiency by eliminating duplicative mandates and realigning manager allocations to better fit investment objectives.
- Successful Large-Scale Asset Transitions – Executed seamlessly across multiple funds, ensuring operational continuity and adherence to investment strategies.
- Enhanced Investment Oversight & Governance – Strengthened AMP Capital’s ability to monitor and manage investment costs more effectively going forward.
- Stakeholder Alignment & Strategic Buy-In – Ensured that all key internal and external stakeholders were aligned throughout the process, minimising disruption and maximising long-term benefits.
Are you planning on undertaking a program to review investment management costs and/or alternatively undertaking a significant investment manager review? Contact us to discuss how we can tailor our approach to your specific needs.
