Super inflows still key, says AMP’s Meller

Financial planning and wealth management may have been key factors driving AMP’s profit announcement today, but the managing director of AMP Financial Services, Craig Meller, has warned of more challenging times ahead.

In an explanation of the AMP Financial Services performance, Meller said that while more challenging investment market conditions were likely to impact investor sentiment, AMP believed it was well-placed given its bias to more stable product cash flows such as superannuation contributions and its high proportion of advised flows.

“The regulatory changes introduced last year mean that the seasonality of flows is expected to remain more pronounced into the future,” he said. “The first quarter is expected to remain the quietest, with the second quarter likely to experience superannuation flows, particularly for high-net-worth customers.”

Meller said that higher inter-product flows, particularly from superannuation to allocated pensions/annuities, were also likely to remain a feature.

“Superannuation is expected to remain the preferred long-term savings vehicle for Australians. Regardless of the short-term environment, there are still significant reasons for customers, particularly those closest to retirement, to contribute strongly to superannuation,” he said.