Genesys closure weighs on AMP cashflows
AMP Limited's closure of Genesys Wealth Advisers has weighed on its cash flows, with the company reporting a significant third quarter drop to 30 September 2015.
The company reported Australian wealth management net cash flows were $241 million for the September quarter, down from $476 million, with the company's commentary acknowledging that this had been driven in large part by the closure of Genesys.
It said that excluding those Genesys advisers who left AMP during the third quarter, net cash flows were $531 million — representing an increase of 11 per cent over the same quarter last year.
The company's commentary noted that cash flows had also been impacted by increased investment market volatility and continued implementation of the Future of Financial Advice changes.
It said total assets under management were down 3 per cent to $111.1 billion but up 6 per cent on the same period last year, with the decline largely reflecting the negative investment market, while retail net cash flows into AMP platforms fell 8 per cent to $707 million in the quarter (down from $771 million last year), as lower adviser cash flow activity impacted cash inflows during the quarter and higher pension payments mitigated the benefit from retention activities.
The AMP update also pointed to a disappointing result for its North platform, with net cash flows of $1.1 billion, down 24 per cent on the same period last year.
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