- Australian wealth management (AWM) assets under management (AUM) increased A$1.6 billion to A$125.7 billion during Q1 21, reflecting improved investment markets.
- AWM net cash outflows of A$1.5 billion in Q1 21 (Q1 20: A$1.7 billion), includes A$448 million in regular pension payments to clients.
- AMP Bank total loan book increased by A$0.2 billion to A$20.8 billion, driven by growth in owner-occupied loans in a highly competitive market.
- AMP Capital AUM reduced 1.7 per cent to A$186.5 billion (Q4 20: A$189.8 billion), primarily reflecting net cash outflows during the quarter from public markets, sale of the Global Companies capability and share of listed NZ REIT Precinct Properties New Zealand Limited.
- AMP Capital external net cash outflows of A$1.3 billion in Q1 21, driven primarily by fixed income outflows as well as planned divestments of assets in infrastructure equity closed-end funds. The divestments, reflected in cash outflows, delivered strong performance outcomes for clients.
AMP Chief Executive Francesco De Ferrari said:
“Business performance remained resilient during the first quarter as we continued to make progress on delivery of our transformation strategy to become a simpler, client-led business.
“In Australian wealth management our cashflows are showing underlying signs of improvement, with a reduction in outflows from corporate super mandates and a reduced impact from Protecting Your Super legislation. The increase to our assets under management in our wealth management business reflects continued improvement in investment markets in Q1. We supported clients through the period with A$448 million in pension payments, which are reflected in cash outflows.
“We saw an encouraging performance in AMP Bank, performing solidly in a highly competitive market with sustained loan book growth. It’s also pleasing to see clients impacted by COVID-19 are getting back on their feet with all home loan pauses now lifted.
“We continue to improve the capabilities of North to support both AMP aligned and external financial advisers in servicing their clients and to ensure it continues to be a leading platform.
“Our teams in AMP Capital have remained focused on delivering for clients, with continued deployment of capital in our infrastructure funds.
“We are accelerating change within AMP, having made strong progress on addressing our legacy issues, including our client remediation program, which is close to 90 per cent complete. We remain focused on delivering critical priorities to progress our transformation over the next quarter and continue positioning the business for future growth.”
Business unit results
Australian wealth management
- AUM increased by A$1.6 billion to A$125.7 billion during Q1 21, reflecting stronger investment markets
- AUM on the North platform increased A$1.7 billion to A$53.4 billion during Q1 21
- AWM net cash outflows of A$1.5 billion in Q1 21, includes:
- Cash inflows of A$5.2 billion, primarily driven by A$3.6 billion cash inflows on the North platform. North cash inflows were down on the previous year (Q1 20: A$4.0 billion) due to reduced adviser activity during the period.
- Cash outflows of A$6.7 billion (Q1 20: A$7.6 billion), includes A$448 million in regular pension payments to clients in retirement and the exit of a corporate super mandate.
- AMP Bank’s total loan book grew by A$0.2 billion to A$20.8 billion in Q1 21 driven by competitive owner-occupied pricing in a highly competitive market
- Total deposits decreased by A$0.1 billion to A$16.0 billion in Q1 21, in line with AMP Bank’s strategy to optimise its funding mix.
- Home loan repayment pause program, available to support clients during COVID-19, has completed.
- AUM declined 1.7 per cent to A$186.5 billion from A$189.8 billion in Q1 21, primarily reflecting net cash outflows for the period of A$2.9 billion.
- AMP Capital external net cash outflows of A$1.3 billion, driven primarily by fixed income outflows as well as planned divestment of assets in infrastructure equity closed-end funds. The divestments, reflected in cash outflows, delivered strong performance outcomes for clients.
- External net cash outflows were partially offset by continued inflows in infrastructure debt capability as investments were made. Real asset investment activity continues with committed capital of A$4.0 billion available for deployment as at 31 March 2021.
- China Life AMP Asset Management (CLAMP) joint venture continued to perform, generating A$646 million in cash inflows.
- AMP Capital AUM reduced by A$3.3 billion with A$2.4 billion attributable to internalisation of the management of listed NZ REIT Precinct Properties New Zealand Limited and sale of the Global Companies capability.
New Zealand wealth management
- New Zealand wealth management total AUM decreased to A$12.2 billion (Q4 20: A$12.4 billion), in part due to the exit of a large corporate superannuation client.
- New Zealand wealth management net cash outflows of A$102 million (Q1 20: A$56 million net outflow), driven by increased competitor activity, exit of a corporate superannuation client, and the ongoing impacts from COVID-19.