POWERED BY MOMENTUM MEDIA
AMP struggles to hold ground on super
AMP Limited claims to have retained the majority of its corporate superannuation mandates in the wake of its appearance before the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
However, the company acknowledged in its full-year results announcement that total corporate superannuation reported net cash outflows of $806 million during the financial year, relative to net cash inflows of $717 million in the previous financial year.
It said the decline was driven by lower mandate wins and higher outflows, noting that the previous financial year had seen $521 million of large corporate mandate wins.
“There were no outflows from loss of large corporate super mandates in FY18,” the Australian Securities Exchange (ASX) announcement said.
However, it acknowledged that there had been an increased level of employer review of corporate super arrangements since AMP’s appearance before the Royal Commission, “with AMP retaining the majority of large mandates following completion of review”.
It said AMP’s corporate offerings, SignatureSuper and AMP Flexible Super – Employer had net cash outflows of $58 million, down $1.3 billion on the previous financial year.
“There were no large mandate wins within SignatureSuper with no plan transitions from CustomSuper,” it said.
The announcement noted that other corporate superannuation comprising CustomSuper, SuperLeader and Business Super experienced net cash outflows of $748 million – an increase of $271 million over the previous financial year with the decline in performance driven by higher outflows since the second quarter.
Recommended for you
In its pre-election policy document, the FSC highlighted 15 priority reforms, with superannuation featuring prominently, urging both major parties to avoid changing super taxes without a comprehensive tax review.
The Grattan Institute has labelled the Australian super system as “too complicated” and has proposed a three-pronged reform strategy to simplify superannuation in retirement.
Super funds delivered a strong 2024 result, with the median growth fund returning 11.4 per cent, driven by strong international sharemarket performance, new data has shown.
Australian Ethical has seen FUM growth of 27 per cent in the financial year to date.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.72 3 y p.a(%)
3
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
27.64 3 y p.a(%)
