Struggling discretionary contributions hamper AMP
Despite improving markets and stronger investor sentiment, AMP Financial Services has revealed this has yet to be translated into improved discretionary contributions into superannuation.
The AMP analysis is contained in the company’s report to the Australian Securities Exchange (ASX) on its third-quarter cashflows, which also pointed to a loss of $40 million of funds as a result of its Hillross Financial planning division reaching agreement with what it described as a small number of planner practices to cease ongoing licensing arrangements last year.
It said that, excluding these losses, Hillross had recorded net inflows of $19 million.
The report also said that AMP Financial Planning net inflows were up 18 per cent over the September quarter last year, but were actually down by 13 per cent on the previous quarter.
Further, it said that total net cashflows for retail superannuation and allocated were down 55 per cent on the corresponding period last year, reflecting the fact that discretionary contributions continued to stall, reflecting declining investment markets. However, the challenges facing AMP’s retail superannuation and annuities business were offset by the performance of its corporate superannuation, which saw net cashflows increase by $110 million to $127 million.
AUTHOR
Mike Taylor
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