AMP Limited today reported cashflows, assets under management (AUM) and an update on its wealth protection business for the first quarter to 31 March 2015.
AMP Chief Executive Craig Meller said: “Cashflows across the business are encouraging, particularly in our contemporary products such as our North wrap platform, which is attracting good external flows. Our focus on Asia continues to deliver results and the insurance business remains in line with guidance.”
Australian wealth management net cashflows for the quarter were $342 million, down 6 per cent from $363 million in Q1 14. This was largely due to a $54 million increase in net cash outflows from external platforms to $296 million in Q1 15. Retail net cashflows onto AMP platforms increased 10 per cent to $661 million in Q1 15 from $600 million in Q1 14.
Total AUM was $116.1 billion, up 6 per cent from $109.5 billion at the end of Q4 14 (and $101.1 billion at Q1 14). This largely reflects positive investment market movements during the quarter. Average AUM increased by 6 per cent to $113.4 billion over the same period.
Q1 15 flows were partially impacted by AMP’s successful deeming campaign in Q4 14, which reduced external cash inflows into AMP’s retirement income products and reduced the level of transition of customers from closed to open products during the quarter.
AMP’s leading wrap platform North reported net cashflows of $926 million in Q1 15, down 7 per cent from Q1 14. Q1 15 external flows into North were up 6 per cent over this period, driven by stronger inflows into superannuation and investment products. Over 60 per cent of North’s net cashflows were externally sourced. Customers also continued to be attracted to North’s guaranteed options which accounted for 10 per cent of net cashflows in the first quarter. North AUM grew to $17.8 billion at the end of the quarter, up 11 per cent from $16.0 billion at the end of Q4 14 (and $10.7 billion at Q1 14).
AMP Flexible Super reported net cashflows of $347 million in Q1 15, down from $387 million in Q1 14. While cash inflows into AMP Flexible Super increased 8 per cent, rising AUM in retirement accounts resulted in higher outflows. Total AUM in AMP Flexible Super increased by 8.7 per cent over the quarter to $14.2 billion, up from $13.1 billion at the end of Q4 14 (and $10.5 billion at Q1 14).
Corporate superannuation net cash outflows were $23 million in Q1 15 compared to a net cash inflow of $5 million in Q1 14. The decline was in part due to significant redundancies within a large corporate plan and higher outflows to internal products. Flows will benefit through 2015 from mandate wins as customers begin to transition.
External platform net cash outflows were $296 million in Q1 15 compared to a net cash outflow of $242 million in Q1 14. This was largely the result of lower inflows, particularly on the Asgard and BT Wrap platforms, in part, as customer flows gravitate towards North.
AMP SMSF assets under administration were $19.7 billion at the end of Q1 15, an increase of $809 million from Q4 14. At the end of Q1 15 AMP SMSF had 15,181 customer accounts under administration (including SuperIQ) down from 15,462 at the end of Q4 14.
AMP Capital net cashflows for Q1 15 were $873 million, comprising external net cash inflows of $1,643 million for the quarter and internal net cash outflows of $770 million.
A number of large domestic external mandate wins contributed to the strong Q1 15 flows for AMP Capital. Key wins were across both fixed income and infrastructure asset classes.
AMP’s strategic partnership with MUTB in Japan again delivered strong flows, as did other distribution partnerships in Japan across a number of asset classes. During the quarter the MUTB partnership delivered net flows in the order of $300 million. The China Life AMP Asset Management Company (CLAMP) also contributed to the external net cash inflows in the first quarter, with four new funds launched over the period.
AMP Capital AUM at the end of Q1 15 was $160.5 billion, up 6 per cent from $151.5 billion at the end of Q4 14 (and $142.2 billion at Q1 14). Average AUM also increased 6 per cent over the quarter to $156.6 billion.
AMP New Zealand financial services’ net cashflows of A$52 million in Q1 15 were down from A$59 million in Q1 14. Cashflows into the KiwiSaver offering increased slightly on Q1 14 to A$81 million, but this was offset by an increase in other net cash outflows to A$29 million, from A$20 million in Q1 14.
Australian mature net cash outflows in Q1 15 were $361 million, compared to a net cash outflow of $374 million in Q1 14.
AMP Bank’s mortgage book increased 1.5 per cent to $14.7 billion at the end of Q1 15 from $14.5 billion at Q4 14. The AMP aligned adviser channel contributed 26 per cent of AMP Bank’s mortgage new business. The deposit book declined $126m (1.4 per cent) in Q1 15 relative to Q4 14.
Australian wealth protection annual premium in-force (API) was down by 0.5 per cent in Q1 15 to $1,926 million compared to $1,936 million in Q4 14. The small decline in API was primarily driven by a 0.7 per cent fall in individual lump sum insurance and a 1.1 per cent decrease in individual income protection.
Business update on Australian wealth protection business
During Q1 15, claims and lapse experience across AMP’s insurance business was broadly in line with best estimate assumptions outlined at AMP’s FY 14 result.
Best estimate assumptions remain in line with FY 14 guidance.
Source: AMP
