Embattled AMP hits record low in wake of more fund outflows
AMP shares have hit a fresh record low after the under-pressure wealth manager revealed it suffered more outflows in the March quarter.
Over the three-month period, its wealth management assets under management increased by $1.6bn to $125.7bn on the back of rising investment markets.
But net outflows hit $1.5bn, down only slightly on the $1.7bn in outflows in the same period last year.
AMP Capital, meanwhile, bled $2.9bn in net outflows, dragging its assets under management down to $186.5bn.
AMP shares tumbled 3.7 per cent to end at $1.12, a record low.
Despite billions flowing out of the wealth manager, outgoing CEO Francesco De Ferrari attempted to paint a positive picture, saying cashflows were showing underlying signs of improvement.
“Business performance remained resilient during the first quarter as we continued to make progress on delivery of our transformation strategy to become a simpler, client-led business,” he said in the quarterly update. “The increase to our assets under management in our wealth management business reflects continued improvement in investment markets in the first quarter.”
Of the $1.5bn in net outflows in its wealth management division, a third was due to pension payments.
“We are accelerating change within AMP, having made strong progress on addressing our legacy issues, including our client remediation program, which is close to 90 per cent complete,” Mr De Ferrari said. “We remain focused on delivering critical priorities to progress our transformation over the next quarter and continue positioning the business for future growth.”
But no mention was made of the protracted takeover talks with Ares Management, which will likely frustrate shareholders anxious for some movement in the discussions.