AMP’s New Zealand wealth management business has reported negative cash flow for the first quarter of 2019.
In its latest financial result, AMP NZ posted net cash outflows of AU$52 million compared to AU$53 million in net cash inflows from the same period last year.
Among the key highlights for the firm include a 7% increase in assets under management (AUM) to AU$11.9 billion. AMP said this is driven primarily by positive market performance and net cash inflows of AU$73 million into KiwiSaver.
Read more: AMP reveals board changes
Meanwhile, AMP Australia’s wealth management suffered net cash outflows of AU$1.8 billion, including AU$538 million of regular pension payments, in the wake of the Royal Commission. AMP said weaker cash inflows were offset by the Australian wealth management’s AUM, which increased by 5% to AU$129.3 billion along with positive investment markets.
“Stronger investment markets delivered growth in assets under management in Australian and New Zealand wealth management and at AMP Capital,” AMP chief executive Francesco de Ferrari said. “Cashflows in Australian wealth management continue to be challenged given the post-Royal Commission environment.”
During the firm’s recently held annual general meeting, Ferrari highlighted AMP will remain focused on transforming its business with the separation of Australia and New Zealand insurance and mature businesses for the rest of the year. Work to deliver advice remediation as well as strengthen risk management, internal controls and governance will also be taken, he added.
