It has been a difficult period for Australian giant AMP.
The company, which has been battling to regain its reputation after revelations of widespread misconduct including a public inquiry finding it had charged life insurance premiums to dead customers, has now taken a blow from the coronavirus pandemic.
In an update on Thursday, it reported a drop in assets under management, slipping to AU$19.4 billion. Its Australian wealth business specifically saw assets under management drop to AU$116.3 billion at March 31 – a slip from AU$134.5 billion in the final quarter of last year. Meanwhile, its New Zealand business suffered a fall of 9.8% - slipping to AU$11.1 billion at the end of the quarter.
“Markets in Q1 were extremely volatile particularly in March, with significant falls in equities, fixed income and key commodities impacting our assets under management,” said chief executive officer Francesco De Ferrari in a statement.
“We have seen some recovery since the quarter-end, but expect market volatility to continue and the economic impact of the pandemic to emerge over the remainder of the year.”
In a Reuters report outlining the results, it was noted that the Sydney-based firm’s Capital arm also saw total assets under management drop by AU$10.7 billion to stand at AU$192.4 billion.
