AMP Wealth management continues to bleed funds

AMP Wealth Management in New Zealand continues to bleed funds outflows but it is also attracting sizeable cash inflows, despite continuing to languish in investment performance tables.

Friday, October 22nd 2021, 9:28AM

by BusinessDesk

The fund manager suffered net cash outflows of A$39 million in the September quarter, up from A$13m in the same quarter last year, but that was after a 17% increase in cash inflows to A$362m.

It blamed the continued outflow on its status as one of the government's default KiwiSaver providers not being renewed.

AMP's NZ arm still has A$6.4 billion in KiwiSaver funds under management with a net A$40m of new funds, down from A$64m in the same three months last year.

According to the latest survey of managed funds by consulting actuaries Melville Jessup Weaver, AMP's $921m growth KiwiSaver fund was the third worst performer in the September quarter with a 0.3% return, although the seventh-best performer out of 14 growth funds over the year ended September with a 16.8% return – the best over the year achieved 23.5% while the worst was 14.8%.

Over the 10 years ended September, the AMP fund was the worst performer out of nine funds with a 9.5% annual return.

Two AMP balanced KiwiSaver funds were second and third-worst performers out of 16 balanced funds in the latest quarter and its conservative KiwiSaver fund was the second worst performer out of 17.

AMP's Australian parent suffered net cash outflows of A$1.4b in the latest quarter, although that was an improvement on the A$1.8b outflow in the September quarter last year.

Nevertheless, its assets under management were steady at A$131.2b, reflecting improved investment markets.

AMP Capital suffered internal net cash outflows of A$9.6b, largely reflecting the previously announced loss of the NZ wealth management mandate of A$9.2b.

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