AMP has reported its Q3 results, the first since it announced the divestment of its advice division to Entireti.
In its half-year results in August, AMP announced it will sell its licensee and self-licensed offering Jigsaw to Entireti. Secondly, it sold its minority stake in 16 advice practices to AZ NGA. The firm has been offering financial advice in some form for 175 years.
At the time, chief executive Alexis George said: “It’s a big decision for AMP, it’s a big decision for the industry and will change the shape of the industry, but we believe it’s the right thing to do for our advice industry and the people in it and our shareholders. Things are changing and evolving.”
In the firm’s results for the three months to 30 September, it provided an update on how the deal is progressing.
“The new partnership for our advice business is on track, with completion of the transaction to occur before the end of the year. Our focus remains on a smooth transition and maintaining the strong relationships with advisers as they move to the new joint venture with Entireti.”
The remainder of the quarterly results covered platforms, superannuation and investments, New Zealand wealth management and AMP Bank.
Flows onto the AMP North platform from independent financial advisers (IFAs) increased by 47 per cent on the prior corresponding period to reach 36 per cent of total inflows. Platform assets under management increased from $74.7 billion in Q2 to $78.1 billion, thanks to positive investment markets.
On its North managed portfolios, assets rose 12.3 per cent from $15.9 billion to $17.9 billion.
In its superannuation and investments, assets under management rose from $53.5 million in Q2 to $55 billion, but net cash flow saw outflows of $334 million, a significant change from outflows of $99 million in the previous quarter.
George said: “During the quarter, AUM increased across platforms, superannuation and investments and New Zealand, and net cash flows also improved across these businesses. Platforms cash flows significantly increased on the prior period, while in superannuation and investments, outflows were almost halved, with a continued focus on our renewed member proposition and a new national advertising campaign for AMP Super.”
