AMP’s wealth management business recorded net cash outflows of $1.9 billion in the third quarter of 2019 as its assets under management increased to $133.2 billion.
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.”
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