AMPcontinues to be optimistic about achieving double digit growth in core operating margins, despite a severe 60 per cent downturn in third quarter net cash flows on last year’s figure.
AMP has achieved cash flows of $3.2 billion for the third quarter. At the same time last year, this figure stood at $7.8 billion.
AMP chief executive Paul Batchelor said in a statement to theAustralian Stock Exchangethat the wave of global uncertainty sweeping the markets worldwide was to blame for AMP’s performance.
“Global economic uncertainty is having a significant impact on wealth management companies around the world,” he says. “However, we are successfully managing our business to meet current conditions and preserve current and future profitability.”
Batchelor noted that gross inflows were up 13 per cent to $14.1 billion, while outflows tended to dog the UK and European operations, which he says was “not surprising given the volatility in those markets”.
“At current market levels, AMP still expects to deliver double digit growth in core recurring operating margins for the full 2001 year,” Batchelor says.
AMP Financial Serviceswas a better performer for the funds management giant. The group’s cash flow increased 19 per cent on the third quarter 2000 figure, to $1.3 billion. It’s year to date increase was one of 31 per cent, or $3.3 billion.
However, the UK Financial Services division did not bear the same good tidings for the third quarter. Net cash flows for the period were down 44 per cent from $245 million to $136 million. This was despite an increase in gross inflows into retail products of 20 per cent, or $1.6 billion.
AMP Henderson Global Investorswas the worst affected AMP division for the quarter. It’s contemporary retail cash flows dived 80 per cent to $415 million from $2.1 billion 12 months earlier. Again, this was despite an increase of gross inflows into the group of 13 per cent to $14.1 billion from $12.6 billion.
In other news, AMP chief financial officer Marc de Cure says the group remains on the look out for acquisitions and wants to expand its global real estate management arm.
de Cure says the acquisitions they were in the hunt for related particularly to the expansion of its Henderson Global Investments business
“We are looking hard … but we are not about to go and do anything that is overpriced. But we will continue to scour the market,” he says.
