Inflows from financial advisers to AMP North increased by 17 per cent in the third quarter of 2023, rising to $565 million.
In a Q3 update, the firm said platform assets under management were unchanged from Q2 at $68.3 billion as a result of a decline in net cashflow.
Net cashflow (excluding pension payments) was down from $748 million in Q2 to $426 million in Q3, a decline of 43 per cent.
This was driven by the reduction in non-super investment in response to the current economic conditions, the firm said in an ASX statement.
Looking specifically at its North wrap platform, net cashflow was down from $1.1 billion to $532 million although it noted a “strategic focus” on independent financial advisers had meant inflows from them to North rose by 17 per cent during the quarter.
During the first half of 2023, 31 per cent of inflows to North came from IFAs.
AMP said the decline in net cashflow was offset by pension payments of $499 million which came about from the increases to minimum pension drawdown rates from July 2023.
Alexis George, chief executive of AMP, said: “In platforms, we continue to focus on driving flows from IFAs, with a 17 per cent increase on the prior corresponding period. AUM remained steady, and net cashflows were lower as we continued to see a reduction in discretionary investment, as clients respond to the current economic environment.
“Our retirement solution, My North Lifetime, was last week globally recognised, winning the award for Pension Fund Design and Reform at the World Pension Summit in the Netherlands. This supports our intention to be a leader in this space, ensuring more Australians can enjoy a better life in retirement.”
In its results for the first half of 2023 earlier this year, the firm reported an underlying NPAT loss of $25 million, although this was a 16.8 per cent improvement on 1H22 when it lost $30 million. For FY22, advice losses were $68 million. In the platform space, underlying NPAT was $44 million, up 25 per cent on 1H22.
Platforms saw net cash inflows of $741 million, down from $1.3 billion in the previous year, which was impacted by cyclical factors and economic conditions.
I’ve always thought most AMP Advisers have made morally and ethically lacking decisions as individuals for most of their careers, or , if joining more recently “hoodwinked”.. and so the thought that “ex AMP” advisers (not IFA’s) continue to support AMP merely confirms this for me.
What they continually fail to advise is that the majority of these ” IFA’s” are the advisers that they punted in the Ferrari era who have yet to move their existing clients to a new platform!