AMP has reported modest growth in NZ funds under management during the March quarter with investment markets doing the heavy-rowing.
According to an AMP market update released last week, the NZ group saw net outflows (including newly categorised ‘pension payments’) of almost A$40 million over the first three months of 2024 across its KiwiSaver, superannuation and investment fund product lines.
The AMP KiwiSaver scheme eked out a net A$24 million funds flow in the quarter (again, with ‘pension’ payouts included) but still saw assets under management grow some A$258 million to close at A$6.1 billion on March 31 – on the back of A$234 million from investment returns.
In the same quarter last year, the AMP scheme booked A$65 million of net flows.
Unlike Australian superannuation funds, KiwiSaver schemes do not make pension payments per se but the reclassified outflows likely refer to retirement age withdrawals.
But the accounting conceit aligns the AMP NZ books with Australian counterparts.
“Pension payments are no longer included in the cash outflows figure and are now reported separately in other movements, in line with AMP’s other operating businesses,” the group release says.
Elsewhere, the combined AMP NZ employer superannuation master trust and other retail investment funds bled about A$63 million in net outflows/pensions, saved by investment gains of A$193 million that lifted total assets under management to over A$5.1 billion.
Reporting NZ$3.4 billion at the end of last year, the employer super NZ Retirement Trust comprises the largest chunk of the ‘other’ AMP money.
The AMP Australia business also endured a flat quarter overall with steady net positive platform flows counter-acted by continuing outflows of A$371 million (albeit, half the losses recorded in the same period last year) in the groups super/investments arm.
Alexis George, AMP chief, said the platform business – particularly, the adviser-supported North – saw flow growth during the quarter while the firm is “navigating the headwinds” faced by its bank.
“Our wealth management businesses, platforms, superannuation and investments and New Zealand, benefitted from the positive investment markets, while in Australia pension payments increased as we continue to see the impact of lifting the minimum drawdown limits that come into effect in July 2023,” George said.
Australian super fund members in ‘pension phase’ are required to withdraw at least a certain percentage of savings each year under minimums set by the government.
The AMP share price was unmoved by the news, resting at A$1.12 near the close of last week.