AMP Limited today reported cashflows for AMP Financial Services (AFS) and AMP Group assets under management (AUM) for the first quarter to 31 March 2013.
AFS net cashflows were $95 million for the quarter, a $387 million turnaround on Q1 12, which had a net outflow of $292 million.
The growth in AFS cashflows in the quarter was the result of a strong performance by its retail business on AMP platforms with $391 million net cashflows compared to outflows of $45 million in Q1 12, and strong flows into AMP SMSF which was established in June 2012.
Total Australian wealth management AUM at 31 March 2013 was $89.8 billion, up 4.8 per cent on Q4 12. AMP Capital AUM was $130.7 billion, up 1.6 per cent on the previous quarter.
Key points for Q1 13 were:
- AMP’s North wrap platform continued its strong growth in the quarter tripling net cashflows to $779 million compared to $228 million in Q1 12, reflecting the benefits of recent platform enhancements and a strong take-up across AMP’s aligned planner network. AUM increased by $1 billion to $5.7 billion, up from $4.7 billion in Q4 12.
- North’s popularity was underscored by the recently announced 2013 Wealth Insights survey where it was the highest placed wrap platform in the market amongst financial planners and advisers.
- AMP Flexible Super AUM increased 10 per cent to $8.1 billion compared to $7.3 billion in Q4 12. Net cashflows were $464 million, down from $581 million in Q1 12, reflecting the broader availability of North and a lower proportion of customers moving into AMP Flexible Super from AMP’s older Flexible Lifetime product. Withdrawals from retirement accounts were also higher, reflecting AUM growth.
- AMP corporate superannuation net cashflows for the quarter were $45 million compared to $87 million in Q1 12. Cashflows in Q1 12 benefitted from a one-off $48 million transition of funds from a plan won in the previous year (2011).
- AMP SMSF cashflows[1] were $97 million, up from $55 million in Q1 12 post the establishment of the AMP SMSF business unit in June 2012. As at 31 March 2013, the business unit had over 9,400 member accounts (including 1,365 SuperIQ accounts), up from more than 9,100 in Q4 12.
- AMP Bank’s mortgage book was relatively stable at $12.5 billion compared to $12.4 billion in Q4 12. The deposit book fell 2.5 per cent to $8.1 billion from $8.3 billion in Q4 12. This was due to a change in the funding mix preference for AMP Bank post a medium-term notes issue of $500 million in March 2013.
- AFS’s mature net cash outflows were $439 million, compared to net cash outflows of $394 million in Q1 12. The increased outflow is largely a result of higher transfers of inactive accounts to the Australian Tax Office, following rule changes on the size of superannuation balances and the period of inactivity, which was announced in 2H 12.
- New Zealand net cashflows were $20 million compared to $47 million for Q1 12. Cashflows were impacted by an increase in KiwiSaver outflows for the quarter reflecting higher AUM and an increase in KiwiSaver customers over 65 years old withdrawing funds as the initial five year KiwiSaver lock in came to an end.
- Risk insurance annual premium income for AFS’s risk business was relatively stable at $2.03 billion compared to $2.02 billion in Q4 12.