AMP Capital posts $12b net cash outflows in Q3
AMP Capital has reported net cash outflows of $12 billion for the third quarter, compared to $2.4 billion net cash outflows in Q3 2020, driven by outflows AMP’s New Zealand wealth management (NZWM).
In an update to the Australian Securities Exchange (ASX), it said there was $9.6 billion of outflows due to the transition of the NZWM mandate to an index-based environmental, social, governance (ESG)-linked investment strategy, and external outflows of $2.4 billion.
The external net cash outflows reflected redemptions of asset sales across public markets and real estate funds, with real estate outflows including the sale of 200 George St (for $578.5 million).
The company said that, at the same time, cash inflows remained supported by continued capital deployment in infrastructure equity investments during the quarter.
Following this, AMP Limited reported net cash outflows of $1.4 billion from Australian wealth management (AWM) for the third quarter, which was lower compared to the same period last year ($1.8 billion) and included $0.5 billion regular pension payments to clients in retirement.
Assets under management (AUM) for Australian wealth management remained flat, compared to the prior quarter but the positive investment market returns offsetting the impact of net cash outflows, with average AUM increasing $3.7 billion to $132.4 billion.
AUM on the North platform was up $1.7 billion to $58.6 billion during the quarter and North’s net cashflows grew 21% on Q3 2020 (to $991 million), thanks to pricing reductions announced in Q2 21 and an increase in inflows from external financial advisers to $333 million.
“We have progressed our transformation of wealth management enabling us to deliver superannuation fee reductions at the start of Q4 as we committed,” AMP’s chief executive, Alexis George, said.
“We’ve also continued to invest in our North platform, which has again grown assets under management.”
AUTHOR
Oksana Patron
Recommended for you
Magellan has announced a raft of executive changes including the departure of head of investments Gerald Stack after 18 years and a second appointment from Maple-Brown Abbott.
Morningstar research of seven active Australian asset managers has found they are expected to see client redemptions averaging 3.1 per cent of their FUM per annum through to FY29, with two forecast to lose more than 10 per cent.
Franklin Templeton is to get rid of its Martin Currie branding and fold them into the wider group under ClearBridge Investments and Franklin Equity Group.
The widespread use of alternatives could lead to erosion of the very elements that make them alternatives, according to EY, as fund managers make them more palatable to retail clients.
