Changes to superannuation rules have caused the tide to go out for AMP, with net outflows in its wealth management business totalling $199 million for the March quarter.
While inflows at the wealth manager rose 11 per cent, outflows were up 19 per cent, according to an update provided to the Australian Securities Exchange on May 11.
A year earlier the situation was different with net inflows totalling $209 million.
The outflows were driven by a number of factors including superannuation consolidation across the industry as multiple accounts were closed and default funds migrated to MySuper accounts, many of which are run by industry funds.
The AMP also received less from corporate super mandate inflows and experienced increased outflows as clients moved to self-managed superannuation funds.
AMP’s Australian wealth protection business appears to be stabilising with in-force premiums down only one per cent during the quarter with claims and lapse experience in positive territory.
Commenting on the quarter, AMP chief executive, Craig Meller said the cashflows reflecting an extraordinarily high level of activity across Australia’s superannuation industry as customers transitioned to MySuper prior to 1 July, this year, SuperReview reported.
He said this had led to a consolidation of funds and the allocation of more investments to SMSFs amid a changing regulatory environment.