AMP Limited yesterday reported cashflows for AMP Financial Services (AFS) and the group’s assets under management (AUM) for the third quarter to 30 September 2011.
AFS cashflows and AUM include AXA post the integration of the two businesses. AFS net cash outflows were $335 million for the quarter compared to net cash outflows of $170 million for Q3 10.
Net cashflows were impacted by a net outflow of $192 million from the departure of a Hillross practice in 2010.
Growth in AMP’s contemporary platforms and products partially offset the impact of volatile markets and subdued investor sentiment. Net retail cashflows on AMP platforms were $119 million for the quarter, up 21 per cent on Q3 10 ($98 million).
AFS’s growth initiatives continued to deliver results in Q3 11 with strong growth in the business’ core contemporary platforms and products despite the challenging conditions.
Highlights for Q3 11 were:
- AMP Flexible Super, launched just 18 months ago, is Australia’s fastest growing superannuation and retirement product with $3.5 billion in AUM, a 24 per cent increase over the quarter. Net cashflows for Q3 11 were $788 million, up 45 per cent on Q3 10.
- AXA North has evolved into an industry leading wrap platform with $2.0 billion in AUM – up 7 per cent on 30 June 2011. Net cashflows in Q3 11 doubled to $242 million compared to Q3 10.
- New Zealand KiwiSaver net cashflows increased 10 per cent on Q3 10 to A$168 million. AUM at 30 September 2011 was A$1.4 billion.
- Risk insurance annual premium income for AMP and AXA’s risk businesses was up 4 per cent in the quarter to $1.9 billion due to higher sales and annual premium increases.
- AMP Bank’s mortgage book grew to $11.1 billion, up from $11.0 billion in the previous quarter while its deposit book grew 16 per cent to $6.4 billion over the same period.
External platforms net cash outflows include the impact of the departure of the Hillross practice in 2010 with a remaining $140 million in AUM expected to transition from this practice by the end of 2011.
Corporate superannuation net cash outflows were $40 million, compared with a net cash inflow of $93 million in Q3 10. Cash outflows increased in Q3 11 due to higher customer withdrawals while cash inflows fell after the closure of AMP’s CustomSuper and SuperLeader products in 2010. AFS’s contemporary large corporate superannuation product, SignatureSuper, continued to show resilience in a difficult environment, benefiting from a high proportion of superannuation guarantee contributions.
AFS’s Mature net cash outflows increased by $27 million due to the closure of the AMP Retirement Savings Account with new customers now moving to the low cost AMP Flexible Super product.
AFS’s Australian Contemporary Wealth Management AUM, restated to include AXA, and AMP Capital Investors’ AUM at 30 September 2011, were impacted by lower investment markets. Australian Contemporary Wealth Management AUM at 30 September 2011 was $78.4 billion, down 5 per cent for the quarter.
AMP Capital Investors AUM at 30 September 2011 was $94.4 billion, down 3 per cent for the quarter.
