- Growth in assets under management (AUM) in Australian wealth management and AMP Capital from strong investment markets. New Zealand wealth management AUM fell during the quarter mainly due to a weaker New Zealand dollar.
- Increased cash inflows in Australian wealth management offset by higher outflows including A$0.6 billion of regular pension payments and A$0.2 billion from the impact of new Protecting Your Super legislation.
- AMP Capital net external cash inflows of A$0.8 billion driven by strong infrastructure debt and real estate flows, lifting AUM above A$202 billion.
- AMP Bank experienced strong deposit growth of A$0.6 billion to A$14.5 billion, and the loan book increased to A$20.3 billion.
AMP Chief Executive Francesco De Ferrari said:
“Each of our businesses performed broadly as expected during the third quarter. AMP Capital continues to experience strong demand for its real assets investment capabilities, with especially strong infrastructure debt flows and commitments of US$6.2 billion received for its fourth infrastructure debt strategy.
“AMP Bank has again delivered exceptional value to clients, which is reflected in strong deposit growth and an increase in our loan book.
“Australian wealth management is taking significant steps to reinvent its business model, building a business around client needs. 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.”
Australian wealth management
- Australian wealth management AUM increased to A$133.2 billion as at Q3 19.
- Q3 19 net cash outflows of A$1.9 billion driven by:
- Cash inflows of A$7.1 billion, A$0.6 billion higher than Q3 18, with North net cash inflows up 25 per cent to A$1.1 billion.
- Cash outflows of A$9.0 billion included A$0.6 billion in regular pension payments to AMP’s clients and A$0.2 billion due to the introduction of Protecting Your Super legislation.
- Higher North net cash inflows driven by a 31 per cent increase in inflows (A$0.3 billion) from external financial advisers. MyNorth fee reductions also led to higher internal flows.
- There were no material outflows from the loss of corporate super mandates during Q3 19. Corporate super outflows of approximately A$1.4 billion are expected during the next 12 months.
- AMP Capital AUM increased to A$202.2 billion, with a further A$5.4 billion capital available for investment of which A$2.2 billion is earmarked for investments made but yet to close.
- Q3 19 net cash outflows of A$1.1 billion comprised:
- Net external cash inflows of A$0.8 billion.
- External cash inflows reflected strong momentum in infrastructure debt, where A$0.6 billion was invested in international assets, and real estate.
- This was offset in part by public markets redemptions and China Life AMP Asset Management outflows.
- Net internal cash outflows of $1.9 billion followed outflows in Australian wealth management.
- Outside the quarter, AMP Capital’s fourth infrastructure debt strategy raised a record US$6.2 billion, which includes the final close of the AMP Capital Infrastructure Debt Fund IV (IDF IV), co-investment rights and separately managed account commitments.
- AMP Bank deposits increased by A$0.6 billion in Q3 19 to A$14.5 billion, with strong growth particularly in retail and platform deposits reflecting AMP Bank’s strategy to move to a more deposit-led funded Bank.
- AMP’s total loan book grew by A$0.1 billion to A$20.3 billion in Q3 19, with ongoing growth from the mortgage broker channel amid subdued market conditions.
New Zealand wealth management1
- New Zealand wealth management AUM down slightly at A$11.8 billion for the period, mainly due to a weaker New Zealand dollar.
- New Zealand wealth management experienced net cash outflows of A$0.1 billion compared to A$0.1 billion in net cash inflows in Q3 18.
1 AMP Limited announced on 10 October that it is bringing together its banking and Australian wealth management business units into a combined organisation to be named AMP Australia.