‘Difficult’ investment markets impact AMP’s assets under management

AMP reported lower assets under management (AUM) in its Australian Wealth Management (AWM) and AMP Capital businesses during the third quarter of the year.

In an ASX update on Friday, AMP said AWM’s AUM fell $3.7 billion to $121.4 billion in the third quarter. This was primarily due to lower investment markets as well as net cash outflows of $0.8 billion, down from $1.9 billion a year earlier.

However, assets under management on the North platform remained relatively stable at $55.7 billion with net cash inflows of $0.8 billion. The company said Northern inflows from independent financial advisers (IFAs) increased 16% in the second quarter and 45% in the third quarter of 2021 to $483 million.

“We made solid progress in the third quarter, which is reflected in the cash flows we announced today,” said AMP CEO Alexis George.

“While challenging investment markets continued to impact assets under management, we have seen significant improvement in our cash flow as more clients choose to join or stay with AMP. “

AMP said the improvement in net cash outflows for AWM was largely due to lower cash outflows from Master Trust, which improved by $773 million from the third quarter of 2021 to $819 million. dollars.

Platform net cash inflows increased to $363 million from $205 million in the third quarter of 2021.

“We have seen a reduction in cash outflows to other pension funds and are gaining new clients on our North platform, which has continued to increase cash flow for independent financial advisors – a key strategic focus for AMP,” said Mr. George.

Meanwhile, AMP Capital’s AUM fell from $53.4 billion in the second quarter to $52.0 billion in the third quarter, which AMP said reflected the exit from a separately managed real estate account. of $2.9 billion.

The company noted that the transfer of management rights for the $8 billion AMP Capital Wholesale Office Fund (AWOF) to Mirvac will be reflected in its fourth quarter report.

Falling investment markets and currency losses due to a weaker New Zealand dollar led to a drop in AMP New Zealand’s wealth management assets under management to $9.8 billion , compared to $10.2 billion in the second quarter, with net cash inflows of $23 million.

AMP Bank’s total loan portfolio reportedly increased by $0.6 billion to $23.3 billion, while total deposits increased by $0.7 billion to $20.7 billion. .