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AMP posts drop in super cash flows
AMP Limited's total retail and corporate superannuation, and self-managed superannuation funds (SMSF) reported drops in the first quarter (Q1 16) of the year.
This came off the back of challenging domestic and global investment market conditions, the firm's first quarter to 31 March 2016 report said.
Total retail and corporate superannuation net cash flows on AMP platforms were $383 million in Q1 16, down from $638 million in Q1 15, as volatile markets and lower investment activity impacted cash inflows, the report said.
However, strong pension assets under management (AUM) growth in financial year 2015 (FY 15) resulted in higher pension payments in Q1 16.
AMP Flexible Super reported net cash flows of $82 million in the quarter, down from $347 million in the corresponding quarter the year before, driven by lower inflows. AMP said this reflected fewer superannuation to pension transitions and growing adviser preference for its North platform.
Corporate super net cash flows were $109 million in Q1 16 compared to net cash outflows of $23 million in Q1 15.
"Cash flows continued to benefit from member transitions from recent large mandate wins while the prior period was impacted by significant outflows within a large corporate plan," the report said.
AUM for AMP's SMSF business, SuperConcepts, was at $18.2 billion at the end of the first quarter, a drop of $566 million from Q4 15.
"Across administration and software services, SuperConcepts added approximately 400 funds during Q1 16 and now supports more than $38,400 SMSFs of which 42 per cent are funds under administration," the report said.
Commenting, AMP chief executive, Craig Meller said "Domestic and global investment market conditions continued to be challenging during the first quarter, subduing cashflows across our business".
"Ongoing claims volatility continues to be a feature in Australian wealth protection. Despite these challenges we remain confident in the overall long-term outlook for AMP," he said.
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