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AMP flags sharpening of lifecycle communications
AMP has flagged changes to the way in which it communicates with members of its MySuper funds as it progressively rolls out its lifecycle approach.
The company's approach has been signalled by AMP Capital Multi-Asset Group chief investment officer, Sean Henaghan who has pointed to the way in which the company wants to evolve communications around lifecycle products to ultimately deliver a member-centric outlook.
"Our ultimate aim is for our MySuper customer communications to look and feel different to what people are used to," Henaghan said.
"Communications should directly reflect how each age-based cohort is managed."
"While we expect communications will, initially, be built around the average member in an age cohort, future iterations could focus on individual customers' specific circumstances (and potentially also include assets outside of super)," he said.
Henaghan said an expected income in retirement (in today's dollars) was far more relevant than a current lump sum dollar value.
"This might also serve to dissipate investor concerns about short-term volatility as it helps to remind customers that superannuation is a long-term investment," he said.
"Notably, there is nothing stopping a typical balanced fund employing customised communication."
"Referencing the average customer age, we can also target the tone of the communication and the method of delivery. For example, language, collateral, and branding for the 1950s cohort should be very different to that for the 1990s cohort."
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Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
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