AMP flows reveal super exodus


By Megan Tran

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AMP’s first quarter cash flow update revealed flat or declining flows into many of its superannuation products as customers consolidated their super accounts or moved into self-managed super funds (SMSFs).

The figures showed inflows to the group’s wealth management business increased 11 per cent to $6.4 billion, which was offset by a 19 per cent increase in outflows driven by increased consolidation activity across the superannuation sector.

Net cash flows across the wealth management business were $199 million during the quarter, down from $209 million in the first quarter of last year.

AMP said the decline in net cash flows was driven by the migration of default funds to MySuper, fewer corporate super mandate inflows and increased outflows to SMSFs.

“Higher outflows to SMSFs were driven, in part, by customer preference for residential property investment,” the group stated.

Assets under management in AMP’s Flexible Super product grew 1 per cent in the quarter to $16.1 billion and were up 8 per cent from $14.9 billion at the end of the first quarter of 2016, while in the group’s Flexible Lifetime Super range, net cash outflows increased to $380 million from $104 million in the prior corresponding period.

AMP chief executive Craig Meller said the figures reflected a high level of activity in the super industry more broadly.

“As a result, both Australian wealth management cash inflows and outflows were higher,” he said.

“Cashflows into [superannuation platform] North increased, reflecting our continued investment in the market leading platform.

“AMP’s SMSF business, SuperConcepts, also increased its assets under administration as it builds on its market-leading position.”

Meller said wealth management cash flows had been strong since the beginning of the second quarter, and the company was bracing for the super changes announced in last year’s budget.

He added that the wealth protection business was stabilising following measures taken last year.

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