Net outflows have continued at the country’s two largest wealth management businesses, IOOF and AMP, July quarter disclosures reveal.
AMP’s wealth business suffered outflows of $1.94 billion and superannuation outflows of $1.4 billion.
Meanwhile, IOOF reported $123 million of outflows from its advice business for the same period.
Morgan Stanley analyst Daniel Toohey described the net outflows from IOOF’s advice business as “not surprising” given the challenging market backdrop.
“However, we expected this would be largely offset by the opportunity for IOOF to potentially capture displaced bank aligned advisers seeking new ADGs [Aligned Dealer Groups],” Toohey noted.
AMP chief executive Francesco De Ferrari separately noted that AMP’s wealth business is taking “significant steps” to reinvent its business model, a process that continues under the leadership of Alex Wade who is now in charge of both the bank and wealth businesses.
IOOF, meanwhile, continues to look for ways to simplify its sprawling advice business under CEO Renato Mota.