In a statement to the ASX, AMP said its cash inflows in the third quarter was at $7.1 billion, $0.6 billion more than in the third quarter of 2018, with North net cash inflows up 25 per cent to $1.1 billion.
However, this was offset by higher cash outflows of $9 billion, including $0.6 billion in regular pension payments to AMP’s clients and $0.2 billion from the impact of the Protecting Your Super legislation.
Higher North net cash inflows was driven by a 31 per cent increase in inflows ($0.3 billion) from external financial advisers. Further, AMP said MyNorth fee reductions also led to higher internal flows.
AMP said there were no material outflows from the loss of corporate super mandates during the third quarter of 2019, and that corporate super outflows of approximately $1.4 billion to be expected during the next 12 months.
“Australian wealth management is taking significant steps to reinvent its business model, building a business around client needs,” said AMP chief executive Francesco De Ferrari.
“We have achieved stronger inflows during Q3, reflecting our improved fee competitiveness, but also higher outflows as the new Protecting Your Super legislation was implemented in Australia.”
So AMP loses $10.5 million in revenue.. and planners get annual opt in. As a regional planner I say Thanks AMP for your contribution to affordability of advice for all Australians. You’d think a firm with such issues would face some type of critic, sanction, penalty, a $100 fine maybe…. by some relevant industry association, they are a paying member of …..such as the FPA? Or are they all in bed together.
Do they count concessional contributions as a cash inflow?
Surprised it wasn’t more
Assuming a modest 0.55% management fee, that’s $10.5m in revenue that walked out the door?
When AMP faced challenges in the past it was their planners and the close relationship they has with their customers that helped steer them through the issues. Unfortunately that is not going to be an option this time I fear as many appear to be disenfranchised. Tough road back from here.