AMP cash flows take a hit
The market downturn has hit AMP Financial Services, which has reported a major decline in cash flows for the March quarter.
The company reported that total net cash flows had been just $129 million for the quarter, compared with $753 million in the previous corresponding period, and that excluding corporate superannuation mandate wins in both periods, net cash flows had fallen to $119 million from $341 million.
Commenting on the outcome, AMP Financial Services managing director Craig Meller said difficult market conditions had impacted on cash flows for the quarter, although he believed AMP was well placed given its resilient business model, low cost ratio and diverse earning streams.
“While mandated super flows provide a steady base, market volatility has led to a decrease in discretionary superannuation contributions across external platforms as well as retail and corporate superannuation,” he said.
“In addition, the recent pattern of seasonality has continued,” Miller said. “The first quarter has traditionally been AMP’s quietest and we believe this is still the case.”
Digging deeper into the AMP data, the company said the March quarter continued the recent trend of flows moving from retail superannuation to pensions and annuities, with around 90 per cent of inflows to allocated pensions/annuities coming from retail superannuation.
AUTHOR
Mike Taylor
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