AMP wealth AuM rises even as cash outflows increase

AMP said that the assets under management (AuM) in its Australian wealth management arm totalled A$129.3bn ($90.8bn) as of 31 March 2019.

This represents a 5% rise from A$129.3bn in the previous year.

The unit reported net cash outflows of A$1.8bn in the first quarter of 2019, versus net outflows of A$200m last year.

In AMP’s New Zealand wealth management unit, AuM increased 7% to A$11.9bn on a year-on-year basis.

The division recorded net outflows of A$52m in the first quarter of 2019, as against inflows of A$53m a year ago.

AuM at AMP Capital rose 4% to A$194.6bn from A$187.2bn.

The rise in AuM across all these businesses was said to be due to positive investment market performance.

AMP CEO Francesco De Ferrari said: “Our focus during the first quarter has been on accelerating change within AMP including establishing a new leadership team, progressing the remediation programme and separating our life insurance businesses, and sharpening our offers to clients.

“Stronger investment markets delivered growth in assets under management in Australian and New Zealand wealth management and at AMP Capital.

“Cashflows in Australian wealth management continue to be challenged given the post-Royal Commission environment.”

AMP was recently subject to a royal commission review. for its financial advice activities.

AMP new CFO

Meanwhile, AMP named John Patrick (JP) Moorhead as its new CFO, replacing Gordon Lefevre who will quit after more than five years in the role.

Moorhead will assume the new responsibility on 1 June 2019 and report to Ferrari.

In the new role, Moorhead will be tasked with managing capital management, treasury, mergers and acquisitions as well as investor relations.

He has been working at AMP Capital since last April and currently serves as the CFO and COO of the business.

He previously worked at Eight Roads- the investment unit of Fidelity International -, Virgin Group, and Goldman Sachs.

In February, AMP named Alex Wade as its new wealth management boss, taking over from Paul Sainsbury.