AMP Capital posts $12b net cash outflows in Q3
AMP Capital has reported net cash outflows of $12 billion for the third quarter, compared to $2.4 billion net cash outflows in Q3 2020, driven by outflows AMP’s New Zealand wealth management (NZWM).
In an update to the Australian Securities Exchange (ASX), it said there was $9.6 billion of outflows due to the transition of the NZWM mandate to an index-based environmental, social, governance (ESG)-linked investment strategy, and external outflows of $2.4 billion.
The external net cash outflows reflected redemptions of asset sales across public markets and real estate funds, with real estate outflows including the sale of 200 George St (for $578.5 million).
The company said that, at the same time, cash inflows remained supported by continued capital deployment in infrastructure equity investments during the quarter.
Following this, AMP Limited reported net cash outflows of $1.4 billion from Australian wealth management (AWM) for the third quarter, which was lower compared to the same period last year ($1.8 billion) and included $0.5 billion regular pension payments to clients in retirement.
Assets under management (AUM) for Australian wealth management remained flat, compared to the prior quarter but the positive investment market returns offsetting the impact of net cash outflows, with average AUM increasing $3.7 billion to $132.4 billion.
AUM on the North platform was up $1.7 billion to $58.6 billion during the quarter and North’s net cashflows grew 21% on Q3 2020 (to $991 million), thanks to pricing reductions announced in Q2 21 and an increase in inflows from external financial advisers to $333 million.
“We have progressed our transformation of wealth management enabling us to deliver superannuation fee reductions at the start of Q4 as we committed,” AMP’s chief executive, Alexis George, said.
“We’ve also continued to invest in our North platform, which has again grown assets under management.”
Recommended for you
Perpetual has seen AUM rise 6 per cent in the last quarter but the departure of a longstanding JOHCM fund manager led to outflows of $2.2 billion from his strategy.
In the latest Meet the Manager profile, Money Management speaks with Michael Skinner, founder and managing director at Blackwattle Investment Partners.
Global fixed income fund Bentham Global Opportunities has been added to several major platforms, enabling it to be accessed more easily by financial advisers.
Following yesterday’s news about First Sentier Investors closing four investment teams, a second global asset manager has announced it is closing its only dedicated Australian fund.
