Hillross practice departure impacts AMP outflows
The departure of a Hillross practice in 2010 saw AMP Limited suffer net cash outflows of $192 million, according to the company's latest third quarter cash flow report filed with the Australian Securities Exchange (ASX).
The report said that net cash flows for the third quarter to 30 September were $335 million compared to net cash outflows of $170 million for the same period a year earlier.
However the company said that growth in its contemporary platforms and products had partially offset the impact of volatile markets and subdued investor sentiment, with net retail cash flows on AMP platforms up 21 per cent over the same period last year to $119 million.
While the company's platforms performed well, its wealth management and insurance businesses struggled, with cash flows related to its contemporary wealth management division down five per cent for the quarter to $78.4 million.
The contemporary wealth protection business was impacted by higher income protection claims and higher lapse rates.
Where the platforms were concerned, the AMP announcement noted that AMP Flexible Super, after launching 18 months ago, had become Australia's fastest-growing superannuation and retirement product. It recorded a 24 per cent increase over the quarter to $3.5 billion in assets under management (AUM), while AXA's North platform had increased AUM by 7 per cent during the quarter to $2 billion.
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Mike Taylor
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