AMPFP struggles but limits outflows
AMP is feeling the pinch of the market downturns with AMP Financial Planning reporting a dramatic downturn in cashflows for the third quarter of 2008 compared to those for the same period last year.
The company said that net cash flows for the quarter were $76 million compared to $217 million for the previous corresponding quarter, albeit that cash outflows had improved by 39 per cent to $2 billion, compared to $3.3 billion for the previous corresponding quarter.
It said the improvement reflected AMP planner focus on both customer retention and advice, which had limited outflows in the current volatile environment.
The company said Hillross net flows for the quarter $39 million compared to $89 million for the corresponding quarter, reflecting lower discretionary contributions due to ongoing market volatility.
Commenting on the results, AMP Financial Services managing director Craig Meller said they represented a continuation of the trends seen in the first half of 2008.
Discussing the outlook for the group, Meller said market volatility was likely to have an impact on the business.
He said that while market conditions meant that delivering growth in the short term would be more challenging, AMP Financial Services was well placed and remained confident about the medium to long-term outlook for the business.
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