Variable cashflow story for AMP and AXA
AMP Limited has released its first quarter cashflows report inclusive of those for the now-merged AXA Asia Pacific Holdings (AXA APH) business and the data has painted a very mixed picture.
The company announced to the Australian Securities Exchange (ASX) today that AMP Financial Services net cash flows for the first quarter had been just $42 million, compared to $236 million in the first quarter of last year “as higher cash inflows were offset by higher cash outflows”.
The company said net cashflows for AMP’s retail superannuation and pension business were up $23 million on the same period last year, with cash inflows 30 per cent higher as a result of higher rollovers into AMP Flexible Super from new customers.
AMP said net cashflows into the new AMP Flexible Super product were $662 million in the first quarter, with 57 per cent of cash inflows being contributions to superannuation accounts and 43 per cent being contributions to retirement accounts.
It said corporate superannuation net cashflows were $122 million, down $68 million on the first quarter last year.
Looking at AXA APH, the AMP announcement said AXA Australian wealth management had experienced a net outflow of $634 million.
It said platform net cashflows were down $8 million on the same period last year to $84 million, while cash inflows were up 9 per cent as a result of higher sales in the Multiport self managed superannuation offering.
However cash outflows increased 13 per cent due to higher outflows from the Summit and North platforms.
It said advice net cash outflows were $184 million, down from a net cash inflow of $35 million in the first quarter of 2010.
The analysis said cash inflows decreased by 12 per cent and were impacted by continued low investor sentiment and a reduction in Genesys adviser numbers resulting in lower inflows to the badged wrap platform used by Genesys advisers, Solar.
“Cash outflows increased by 40 per cent reflecting in part, one-off transfers from the Solar platform,” it said.
AUTHOR
Mike Taylor
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