AMP NZ reported a slight bump in assets under management (AUM) during the first quarter of 2023 as net positive KiwiSaver flows and kind markets saved the day.
The NZ wealth management AMP offshoot saw total AUM rise A$200 million over the three months to the end of March to hit A$10.7 billion despite offloading a A$185 million master trust product to the Lifetime retirement income group earlier this year.
Lifetime bought the adviser-supported NZ$200 million plus Superannuation Master Trust in January as AMP cut loose a legacy product to focus on KiwiSaver and its employer super scheme: other old-school AMP products may also be in play.
The AMP KiwiSaver scheme drew net flows of A$44 million over the three months to March 31.
In a statement AMP chief executive, Alexis George, said “we continue to consolidate our strong position in the KiwiSaver market with increased inflows into AMP KiwiSaver”.
Once the third-largest KiwiSaver provider, AMP slumped to sixth in the market as at the end of last year, reporting the slowest growth-rate among those tracked by Plan for Life (PFL).
The PFL data shows the-then $5.5 billion AMP scheme grew 2.1 per cent in the December quarter with the fast-growing Milford (up 7.4 per cent over the same period) poised to overtake with just $230 million separating the pair.
Nonetheless, the positive March quarter flow result at least stems the tide somewhat for the AMP scheme that has seen a relentless run of outflows in recent years, including the loss of default KiwiSaver status in 2021 that cost it $600 million or so in funds under management.
The Australian AMP wealth management arm has likewise experienced large outflows of late and the March quarter continued the trend with net negative flows of A$600 million – an improvement on the -A$900 million figure recorded for the same period last year.
Total AMP Australia wealth AUM increased by A$2 billion to reach A$126.2 billion over the first three months of the year, buoyed by investment returns.
Meanwhile, AMP sounded a cautious note about its other remaining business, a bank with about A$24.2 billion in loans.
“While economic conditions have become more difficult for some borrowers, AMP Bank’s credit quality remains strong,” the release says. “Although there are currently very few signs of stress in the book, we remain vigilant, and are working with customers to find appropriate solutions where required.”
AMP finalised the sale of its fund management assets last month, hoping to woo investors with the stripped-down banking and trans-Tasman wealth play along with capital returns.
“… we are progressing our capital and balance sheet review, as well as determining the appropriate operating model and cost base for the business,” George said.