Master Trust outflows continue to hurt AMP

AMP is continuing to point to the increasing use of its North platform by independent financial advisers (IFAs) against the background of first quarter platform net cash flows more than halving.

In a quarterly update to the Australian Securities Exchange (ASX), AMP said that in platforms, net cash inflows were at just $152 million compared to inflows of $406 million for the same period last year.

It said this was driven by lower internal inflows from its Master Trust by $106 million as well as a 7% increase in outflows compared to the same period last year.

“North inflows from IFAs continue to grow, increasing by 30%,” it said.

However, it acknowledged that its Master Trust outflows continued to be problematic albeit that net outflows of $610 million represented an improvement on the $1 billion in the first quarter of last year.

Commenting on the update, AMP chief executive, Alexis George said that Australian Wealth Management assets under management had grown by $2 billion over the quarter and that the company had reduced net cash outflows.

“In our platforms business, our continued strategic focus on the independent financial adviser market is reflected in inflows from IFAs to the North platform being up 30% on the same period last year,” she said.

George said the completion of the sale of the final AMP Capital business last month had further sharpened AMP’s focus on driving te performance of its banking and wealth management businesses.

“At the same time, we are progressing our capital and balance sheet review, as well as determining the appropriate operating model and cost base for the business going forward,” she said.