- SYDNEY, AAP – Wealth manager AMP has reported the loss of another corporate superannuation account but says cash flow is better as investment markets solidify gains.
“Business performance remained resilient during the first quarter,” CEO Francesco De Ferrari said.
Cashflows in the key wealth management arm are showing underlying signs of improvement, he added pointing to a “reduction in outflows from corporate super mandates”.
In the first quarter of 2021, assets under management in the unit increased by $1.6 billion to $125.7 billion, from the same period last year.
Cash outflows totalled $6.7 billion, including $488 million paid out to clients as pension payments and the withdrawal of the super mandate.
On a net basis, cash outflows totalled $1.5 billion.
“The increase to our assets under management in our wealth management business reflects continued improvement in investment markets in Q1,” Mr De Ferrari said in a statement on Thursday.
The CEO, who is soon to be replaced by ANZ executive Alexis George, also said AMP’s client remediation program was almost 90 per cent complete.
In 2018, the financial services royal commission found widespread misconduct within AMP, including charging ‘fees for no service’ and charging dead clients life insurance premiums.
It had to set aside hundreds of millions for customer remediation but that didn’t stop customers from pulling $4 billion in super and other accounts from its wealth management division in 2018.
Mr De Ferriri joined AMP after the scandal broke.
AMP CEO says Q1 performance ‘resilient’
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