AMP Limited is continuing its efforts to turnaround its wealth management business with its first quarter cashflows update revealing the division is still battling against continued weak inflows, higher outflows and the implications of the Royal Commission.
The first quarter update, released to the Australian Securities Exchange (ASX) today said wealth management net cashflows were $1.8 billion, including $538 million of regular pension payments.
Commenting on the situation, AMP chief executive, Francesco De Ferrari said cashflows in Australian wealth management continued to be challenged given the Royal Commission environment.
“We remain focused on transforming our business model in Australian wealth management to compete more effectively,” he said.
“Actions we have already taken to improve outcomes for customers include fee reductions for our MyNorth products, which builds on the MySuper fee cuts we delivered to clients in 2018.”
“We’ll continue to modernise our products to put AMP in a position where we can win in the market,” De Ferrari said.
Dealing in detail with wealth management, the AMP announcement said that assets under management (AUM) increased by five per cent to $129.3 billion with positive investment markets offsetting waker cash inflows/
It said net cash outflows of $1.8 billion compared to $200 million in net cash outflows in the same period last year, with cash inflows of $4.69 billion, $1.3 billion lower than in the first quarter of last year.
The company said AMP Capital net external cash outflows of $20 million reflected quarter-end liquidity management by China Life AMP Asset Management investors and fixed income investment.
It said AMP Bank increased deposits by $218 million with the most growth in retail deposits.