AMP Limited has revealed the degree to which it is feeling the effects of changes to the superannuation regime, with the company reporting net cash outflows of $199 million for the March quarter.
In an update provided to the Australian Securities Exchange (ASX) today, AMP said Australian wealth management net cash outflows were $199 million during the quarter, down from net cashflows of $209 million.
It said this had been driven by increased superannuation consolidation across the industry, the migration of default funds to MySuper, fewer corporate super mandate inflows and increased outflows to self-managed superannuation funds (SMSFs)
The company’s analysis said the outflows to SMSFs had been driven, in part, by customer preference for residential property investment.
On the plus side for AMP, the company noted that cashflows to its North platform had increased by 27 per cent to $1,038 million along with flows to its SMSF business, Super Concepts.
As well, the firm’s Australian wealth protection business appears to be stabilising with in-force premiums down only one per cent during the quarter with claims and lapse experience in positive territory.
Commenting on the quarter, AMP chief executive, Craig Meller said the cashflows reflecting an extraordinarily high level of activity across Australia’s superannuation industry as customers transitioned to MySuper prior to 1 July, this year.
He said this had led to a consolidation of funds and the allocation of more investments to SMSFs amid a changing regulatory environment.