The AMP wealth management business is set to launch a new range of BlackRock-backed funds to the retail market following another tough quarter for its traditional KiwiSaver and superannuation products.
According to scheme documents, the new AMP product suite comprises three diversified funds spanning the usual conservative, balanced and growth spectrum to be sold direct via an online-only application.
A spokesperson for the group said the funds would be available to “select customers” this month before a wider release in a month or two.
AMP NZ flagged the release of a “digital unit trust product leveraging investment in automation and [the] BlackRock partnership” last year.
While AMP NZ will be competing in an increasingly crowded direct digital space, the firm has seen total funds under management fall another A$870 million across its existing range during the March quarter.
The group reported total funds under management (FUM) of A$11.3 billion at the end of March, down from almost A$12.2 billion three months previously.
Despite eking out positive net cashflows of A$10 million into its KiwiSaver funds during the quarter, the scheme FUM fell by A$385 million over the period as market volatility hammered investment returns.
At the same time, investment losses combined with outflows in the AMP super suite and adviser-sold third-party investment platform to see a further net A$421 million reduction in FUM.
Similarly, the AMP Australia wealth management arm reported significant losses with total FUM dropping A$5.8 billion over the quarter to A$136.5 billion.
The AMP Australia wealth arm net cash outflow of A$1.3 billion during the three-month period marked an improvement on the same quarter last year when A$2 billion exited.
North, the AMP Australia investment platform, recorded the one bright note for the group with inflows of A$342 million over the quarter but last week the wider group also revealed the impending loss of corporate super mandate with a major supermarket chain.
“While underlying cashflow trends continue to improve, the conclusion of AMP’s mandate as Woolworths’ corporate super provider is expected in 1H 23, and will generate an additional one-off impact of approximately A$4 billion in cash outflows,” an AMP statement says. “The exit of the mandate is not expected to have a material impact on profitability.”
Last week the ASX-listed AMP confirmed its final exit from the funds management business after selling the remaining private markets infrastructure assets – originally slated for an IPO under the Collimate Capital brand – in two separate transactions to Dexus and DigitalBridge, respectively.
Post the sale, due for completion later this year, AMP will shrink to three divisions: separate Australian and NZ wealth management business plus a bank.
Alexis George, AMP chief, said in a release: “With the transactions we announced last week, we have set AMP up for a strong and sustainable future, with a clear strategy to grow AMP bank and our wealth management businesses in Australia and New Zealand.”