The maybe-for-sale AMP NZ wealth division saw total assets under management fall by about $1.2 billion over the March quarter as net outflows and plunging investment markets hit home.
According to figures released by the ASX-listed firm, the AMP NZ funds under management (FUM) dropped from almost A$12.3 billion at the end of last December to just under A$11.1 billion on March 31 this year.
While year-on-year quarterly cashflows across the AMP NZ KiwiSaver, retail funds and superannuation products were largely stable, investment losses of more than A$1.1 billion (or about a -9 per cent return over the quarter) saw FUM tumble.
During the March quarter the AMP KiwiSaver scheme reported net cash flow of A$37 million – exactly the same as the quarterly figures 12 months previously – on gross inflows of A$163 million.
However, the AMP retail investment and superannuation products saw net outflows of A$69 million and A$24 million, respectively: again, almost exactly on a par with the 2019 result.
The AMP Australian wealth management division also suffered a tough first quarter of 2020 with total FUM declining by almost A$18.2 billion – including net outflows of close to A$2 billion.
AMP Capital fared a little better over the three months to March 31 as FUM fell about A$10.5 billion, comprising A$9.5 billion investment losses and just above A$1 billion of net outflows.
Curiously, the AMP Capital net outflows reflected the exit of internally management money rather than the exodus of external clients. Internal (related AMP entities) clients withdrew a net A$2.4 billion plus from AMP Capital in the March quarter as external clients added positive net cash flows of almost A$1.3 billion, the figures show.
In a statement, AMP chief, Francesco De Ferrari, said the company had experienced a “record level of client enquiries for advice and support as people weigh up important financial decisions” during the coronavirus lockdown.
“Markets in Q1 were extremely volatile particularly in March, with significant falls in fixed income and key commodities impacting our assets under management,” De Ferrari said. “We have seen some recovery since the quarter-end, but expect market volatility to continue and the economic impact of the pandemic to emerge over the remainder of the year.”
AMP is due to report on its now-stalled sale of the NZ wealth business in August. Last week Blair Vernon, AMP NZ chief, confirmed an earlier Investment News NZ report that the sales process was facing delays.
“Everything is taking a bit more time at the moment,” Vernon told a trade rag.