AMP positive despite market ‘headwinds’

Craig Dunn

AMP has good long-term prospects despite the recent massive falls in cash flows compared to this time last year, AMP told shareholders at its annual general meeting.

AMP chairman Peter Mason told shareholders that the economic situation for the rest of 2008 remains uncertain.

“While 2008 is definitely a tougher year than we have experienced in a long time, our long-term prospects are still sound,” he said.

Earlier this month, Money Management reported that AMP’s cash flow for the first quarter of 2008 had fallen over 65 per cent from the same period last year.

AMP chief executive officer Craig Dunn said in his address to shareholders that AMP’s first quarter cash flows had been affected by tougher market conditions and a slowing in discretionary savings in superannuation.

“We expect cash flows in 2008 for both the industry and AMP to come off some way from the record flows experienced last year in both retail and wholesale markets,” he said.

Dunn highlighted the improvements in AMP’s Australian wealth protection and New Zealand businesses as well as stable underlying cash flows in corporate superannuation as positive trends for the company.

Peter Mason also told shareholders that AMP was continuing to focus on its goal of doubling the value of an investment in AMP every five years.

“When we set this goal, we were very clear that it was something that we could achieve over a five-year cycle of good and poor markets,” he said.

“We will honour our commitment to be a sure friend in uncertain times,” he said.