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AMP flags loss of $700m in super mandates
AMP Limited has acknowledged its challenges in the superannuation arena, particularly the impact of employer reviews of corporate super arrangements with outflows of $700 million expected from the loss of mandates.
Releasing its results to the Australian Securities Exchange (ASX) today and outlining a new strategy for its broader wealth management business, AMP actually pointed to total corporate superannuation assets under management actually increasing by seven per cent to $2 billion due to strong investment markets.
But, at the same time, it said that net cash outflows had increased.
“There were no material outflows from loss of large corporate super mandates in the 1H 19,” the AMP announcement said.
“There has been an increased level of employer review of corporate super arrangements since AMP’s appearance at the Royal Commission, with AMP retaining over 20 large mandates at a value of $1.7 billion.”
It said that outflows of approximately $700 million were expected in the next 12 months from a number of lost mandates.
Elsewhere in its half-year announcement, AMP pointed to the manner in which it had moved in line with the Royal Commission outcomes to simplify the governance structure of its superannuation funds.
Further it said the majority of grandfathered commissions would cease in the first quarter of next year.
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