Contact us
|
AMP.com.au
AMP Limited Q3 20 AUM and cashflows update
Our business
22 October 2020
Subscribe
  • Australian wealth management (AWM) assets under management (AUM) increased 0.3 per cent to A$121.4 billion (Q2 20: A$121.0 billion) supported by improved investment markets. Average Q3 AUM increased 2 per cent to A$122.1 billion (Q2 20: A$120.0 billion).
  • AWM net cash outflows of A$1.95 billion were broadly flat (Q3 19: A$1.94 billion), with signs of underlying improvement after adjusting for A$692 million of early release of super payments.
  • North platform growth continued, delivering A$818 million in net cash inflows, including A$196 million from external financial advisers.
  • AMP Capital AUM reduced by 0.4 per cent to A$189.2 billion reflecting cash outflows, and average AUM decreased to A$189.8 billion (Q2 20: A$191.9 billion).
  • AMP Capital experienced net external cash outflows of A$1.1 billion, primarily due to redemptions from public markets products.
  • AMP Bank deposits increased A$52 million to A$17.0 billion and total loan book decreased A$303 million to A$20.6 billion reflecting highly competitive market conditions and economic impact of COVID-19.
  • Portfolio review progressing in parallel with transformation strategy; on-market share buyback remains on hold during the portfolio review.
AMP Chief Executive Francesco De Ferrari said:

“Our business has performed resiliently through the challenges of COVID-19 and a period of internal change in the third quarter. Our people have continued to face into the disruption, remaining focused on supporting our clients through programs such as the early release of super, and by providing financial advice to those who need it.

“Assets under management have increased slightly in our wealth management businesses in Australia and New Zealand and were resilient in AMP Capital. AMP Bank continues to adapt in a challenging market environment as we complete the renovation of our core systems to enable future growth.

“As we move into the second year of our three-year strategy, we are accelerating our business transformation, and continuing to mitigate our legacy issues including our client remediation program which remains on track to complete in 2021. Our portfolio review, announced in this quarter, is progressing in parallel and being managed without delay to our transformation.”

Business unit results

AMP Australia

Australian wealth management

  • Australian wealth management average AUM increased 2 per cent to A$122.1 billion from A$120.0 billion in Q2 20. AUM as at 30 September 2020 increased 0.3 per cent to A$121.4 billion compared to Q2 20, reflecting stronger market movement offset by net cash outflows.
  • North platform growth continued, delivering A$818 million in net cash inflows, including A$196 million from external financial advisers.      
  • Net cash outflows of A$1.95 billion in Q3 20 include:
    • Cash inflows of A$6.0 billion, A$1.1 billion lower than Q3 19 (A$7.1 billion).
    • Cash outflows of A$8.0 billion, down from A$9.0 billion in Q3 19, included regular pension payments of A$453 million and A$692 million in early release of super payments.
  • Further outflows of approximately A$450 million are expected in Q4 20 from a lost corporate super mandate.

AMP Bank

  • Total deposits increased A$52 million to A$17.0 billion with growth in platform deposits offsetting a reduction in retail deposits.
  • AMP Bank’s total loan book decreased 1.4 per cent to A$20.6 billion during Q3 20, reflecting a highly competitive lending environment and continued credit discipline.
  • AMP Bank is continuing to support clients on home loan repayment pauses to recommence payments.

AMP Capital

  • AUM as at 30 September 2020 declined 0.4 per cent to A$189.2 billion from A$189.9 billion in Q2 20 while AMP Capital average AUM reduced to A$189.8 billion from A$191.9 billion in Q2 20.
  • AMP Capital net external cash outflows of A$1.1 billion (net cashflows of A$766 million in Q3 19), reflected the run-off of legacy business[1] and redemptions from public markets products.
  • AMP Capital’s Infrastructure Debt strategy recorded net external cash inflows of A$688 million during Q3 20 from the continued deployment of capital on behalf of investors in Infrastructure Debt Fund IV and the September 2020 launch of a new Infrastructure Debt Asia Pacific strategy.
  • Net internal cash outflows of A$1.3 billion reflected outflows in Australian wealth management.

New Zealand wealth management

  • New Zealand wealth management total AUM increased 1.2 per cent to A$11.8 billion in Q3 20 (Q2 20: A$11.6 billion).
  • New Zealand wealth management net cash outflows decreased to A$13 million compared to A$79 million in net cash outflows in Q3 19.

[1] Run-off legacy business was previously categorised as ‘internal’ prior to the sale of the AMP Life business to Resolution Life, effective 30 June 2020.

Contact details
Lachlan Johnston
+61 466 026 702
lachlan_johnston@amp.com.au
Contact details
Mark Roberts
+61 (0) 466 328 581
Mark_Roberts@amp.com.au