AMP net cashflows softer

By Phil Boeyen, ShareChat Business News Editor

Monday 7th May 2001

First quarter cashflows at financial services and insurance company AMP (NZSE: AMP) have fallen compared with last year in what the company describes as a challenging market.

Net cashflows in the company's investment products for the period were A$8.072 billion compared with A$8.672 billion previously.

Although New Zealand retail and corporate cashflows rose from a net A$16 million to A$20 million, and Australian retail cashflows jumped by 34% to A$713 million, figures in the UK were not as rosy.

Net cashflows in the UK fell more than a billion dollars $637 million, with investment vehicles crashing from $1.62 billion to $547 million.

CEO, Paul Batchelor, says an underlying good result from UK Financial Services was offset by a market-wide slump in collective investment vehicles sales.

He also says that the first quarter net cashflows are pleasing against a backdrop of difficult market conditions and demonstrate the strength of the company's international portfolio of businesses and that the company has got off to a solid start in 2001.

"Funds under management were up to A$298.l billion and the net cashflows demonstrate the resilience of our business model.

"Of course, it is important to remember that cashflows are not representative of total group revenue and are only one, long-term driver of return on equity.

"We remain firmly focussed on driving cost and capital efficiency across the group while continuing to grow the business."

Highlights of the quarter included the company's best ever net cashflows from contemporary retail products in Australia and strong net cashflows of A$5.8 billion from institutions.

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