Wealth manager AMP’s Australia unit posts net cash outflows on uncertainties

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FILE PHOTO: The logo of AMP Ltd adorns its head office located in central Sydney, Australia

(Reuters) – AMP Ltd said on Thursday its Australian wealth management business logged another quarter of cash outflows as it continued to lose investors amid market uncertainty due to the Russia-Ukraine war, with assets under management also taking a hit.

Net outflows from the wealth management business were A$1.33 billion ($963.45 million) for the three months ended March 31, less than the A$1.99 billion outflow a year earlier.

Meanwhile, assets under management at the unit fell 4.1% sequentially to A$136.47 billion on lower investment markets, the company said.

AMP, trying to turn itself around after a series of scandals which included allegations of employee misconduct, saw a slowdown in outflows at its flagship Australian wealth management arm in the previous year ending December.

“We’re seeing positive signs of growth and momentum and have set a clear path to accelerate the transformation of AMP Limited,” Chief Executive Alexis George said on Thursday.

AMP shares were down 0.4% at A$1.19 in early trade.

The 172-year-old firm last week confirmed it would divest AMP Capital by selling the business in different parts for a total valuation of A$2.04 billion, and focus its attention on the remaining banking, wealth and financial advice divisions.

($1 = 1.3805 Australian dollars)

(Reporting by Himanshi Akhand and Riya Sharma in Bengaluru; Editing by Anil D’Silva and Lincoln Feast.)

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