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ISS - ASX 26 2022 - AMP Ltd provides Q1 22 AUM and cashflows update

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ASX RELEASE | 5 May 2022

# **AMP Limited provides Q1 22 AUM and cashflows update**

- AMP Bank grew at 2x system growth with the total loan book increasing A\$0.5 billion to A\$22.6 billion in Q1 22 in a highly competitive market.
- Australian Wealth Management (AWM) net cash outflows of A\$1.3 billion in Q1 22, improved from net cash outflows of A\$2.0 billion in Q1 21.
- North inflows from external financial advisers (EFA) up 53 per cent to A\$342 million on Q1 21.
- AWM assets under management (AUM) decreased to A\$136.5 billion during Q1 22 (Q4 21: A\$142.3 billion), reflecting lower investment markets and net cash outflows.
- AMP Capital AUM on a normalised basis1declined 0.6 per cent to A\$52.5 billion from A\$52.8 billion in Q4 21, primarily reflecting client redemptions from China Life AMP Asset Management (CLAMP) money market funds.

### **AMP Chief Executive Alexis George said:**

*"We're seeing positive signs of growth and momentum and have set a clear path to accelerate the transformation of AMP Limited with the announcement of the sale of Collimate Capital's real estate and infrastructure equity businesses, enabling an increased focus on the growth of our retail banking and wealth businesses.*

*"Our investments in technology to simplify and improve the lending experience has supported AMP Bank to deliver strong growth in a very competitive market, while also supporting customers to own their own home and invest in property.*

*"We continue to transform and simplify wealth management delivering better outcomes for our customers and advisers. There's continuing interest in the North platform from external financial advisers as we continue to expand its investment menu with new managed portfolios and ESG options for clients.* 

*"In AMP Capital our focus has been on delivering on our strategic objectives with the divestment of the GEFI business and infrastructure debt platform, alongside the transfer of the Multi-Asset Group capability to our wealth management business.*

*"With the transactions we announced last week, we have set AMP up for a strong and sustainable future, with a clear strategy to grow AMP Bank and our wealth management businesses in Australia and New Zealand."*

<sup>1</sup> AMP Capital AUM normalised to reflect the proforma impact of Q1 22 strategic initiatives

## **Business unit results**

# AMP Bank

- AMP Bank's total loan book grew by A\$0.5 billion to A\$22.6 billion in Q1 22. Residential loan growth was approximately 2x system growth<sup>2</sup> for the quarter, in a highly competitive market.
- Total deposits increased by A\$1.7 billion to A\$19.5 billion during Q1 22, reflecting a deposit to loan ratio of 86 per cent. Majority of flows were sourced from customer deposits, in line with the Bank's objective to further strengthen its liquidity.

### Australian Wealth Management

- Australian Wealth Management AUM decreased A\$5.8 billion to A\$136.5 billion during Q1 22, reflecting lower investment markets and net cash outflows.
- Net cash outflows of A\$1.3 billion at Q1 22 improved from A\$2.0 billion net cash outflows in Q1 21.
- North EFA inflows of A\$342 million, up 53 per cent on Q1 21.
- While underlying cashflow trends continue to improve, the conclusion of AMP's mandate as Woolworths' corporate super provider is expected in 1H 23, and will generate an additional oneoff impact of approximately A\$4 billion in cash outflows. The exit of the mandate is not expected to have a material impact on profitability.

#### New Zealand Wealth Management

- New Zealand Wealth Management AUM decreased to A\$11.3 billion in Q1 22 (Q4 21: A\$12.2 billion), driven by lower investment markets and net cash outflows.
- Net cash outflows of A\$62 million improved from net cash outflows of A\$102 million in Q1 21, reflecting the non-occurrence of one-off events in Q1 21.
- KiwiSaver net cash inflows of A\$10 million were up from A\$6 million in Q1 21.

### AMP Capital

- AMP Capital's AUM of A\$52.5 billion<sup>3</sup> (Q4 21: A\$177.8 billion) reflects the Q1 22 strategic initiatives, being completion of the sale of the Global Equities and Fixed Income (GEFI) business to Macquarie Asset Management, sale of the infrastructure debt platform to Ares<sup>4</sup> and transfer of the Multi-Asset Group (MAG) to Australian Wealth Management, which all concluded in Q1 22. In total A\$125.0 billion in AMP Capital AUM transferred during Q1 22 with these transactions.
- On a normalised basis, AUM declined 0.6 per cent to A\$52.5 billion from A\$52.8 billion in Q4 21.
- Net cash outflows of A\$1.0 billion, reflect asset divestments in closed-end infrastructure equity funds, delivering strong performance for fund investors; alongside quarter-end liquidity management by China Life AMP Asset Management (CLAMP) investors in a period of market uncertainty.

<sup>2</sup> APRA market share data as at 28 February 2022.

<sup>3</sup> AMP Capital AUM includes AMP Capital's 14.97% share of CLAMP AUM.

<sup>4</sup> Ares Holdings LP, a subsidiary of Ares Management Corporation ("Ares") (NYSE: ARES).

#### **Media enquiries Investor enquiries**

**Mark Roberts** Mobile: +61 466 328 581

**Katherine Perry** Mobile: +61 411 247 629 **Jason Bounassif**  Phone: +61 2 9257 9684

**Richard Nelson** Phone: +61 455 088 099

Authorised for release by the Market Disclosure Committee.

#### **Q1 22 Cashflows**

#### **AMP Bank**

|                           | Q4 21          |           | Q1 22          |
|---------------------------|----------------|-----------|----------------|
| Deposits and loans (A\$m) | End<br>balance | Movement1 | End<br>balance |
| Customer deposits         | 11,671         | 1,490     | 13,161         |
| At call deposits          | 8,769          | 1,201     | 9,970          |
| Term deposits             | 2,902          | 289       | 3,191          |
| Platforms2                | 3,996          | (16)      | 3,980          |
| Super3                    | 2,024          | 37        | 2,061          |
| Other4                    | 92             | 206       | 298            |
| Total deposits            | 17,783         | 1,717     | 19,500         |
| Residential Mortgages     | 21,741         | 554       | 22,295         |
| Practice Finance Loans    | 317            | (23)      | 294            |
| Total loans               | 22,058         | 531       | 22,589         |
| Deposit to loan ratio     | 81%            | 5%        | 86%            |

1 Represents movements in AMP Bank's deposits, loan books and deposit to loan ratio.

2 At 31 March 2022, Platforms include North (A\$3.4b) and other platform deposits (A\$0.6b).

3 At 31 March 2022, Super deposits include AMP Supercash (A\$1.8b) and Super TDs (A\$0.3b).

4 Other deposits include internal deposits and wholesale deposits.

#### **Australian Wealth Management**

#### **Q1 22 Cashflows**

|                                          | Cash inflows |       |         | Cash outflows | Net cashflows |         |  |
|------------------------------------------|--------------|-------|---------|---------------|---------------|---------|--|
| Cashflows by product (A\$m)              | Q1 22        | Q1 21 | Q1 22   | Q1 21         | Q1 22         | Q1 21   |  |
| North1                                   | 3,456        | 3,630 | (2,954) | (3,021)       | 502           | 609     |  |
| Summit, Generations and iAccess2         | 66           | 73    | (286)   | (484)         | (220)         | (411)   |  |
| Other retail investment and platforms3,4 | -            | 2     | (93)    | (161)         | (93)          | (159)   |  |
| External platforms5                      | 48           | 68    | (227)   | (321)         | (179)         | (253)   |  |
| Total Platforms                          | 3,570        | 3,773 | (3,560) | (3,987)       | 10            | (214)   |  |
| Total retail superannuation              | 637          | 585   | (1,142) | (1,554)       | (505)         | (969)   |  |
| Total corporate superannuation           | 822          | 823   | (1,430) | (1,237)       | (608)         | (414)   |  |
| Total Master Trust                       | 1,459        | 1,408 | (2,572) | (2,791)       | (1,113)       | (1,383) |  |
| Total Other6                             | 43           | 110   | (268)   | (501)         | (225)         | (391)   |  |
| Total Australian wealth management       | 5,072        | 5,291 | (6,400) | (7,279)       | (1,328)       | (1,988) |  |

| Cash inflow composition (A\$m)     | Q1 22 | Q1 21 |
|------------------------------------|-------|-------|
| Member contributions               | 919   | 868   |
| Employer contributions             | 874   | 865   |
| Total contributions                | 1,793 | 1,733 |
| Transfers, rollovers in and other7 | 3,279 | 3,558 |
| Total Australian wealth management | 5,072 | 5,291 |

1 North is a fully functioning wrap platform which includes guaranteed and non-guaranteed options. Includes North and MyNorth platforms.

2 Summit and Generations are owned and developed platforms. iAccess is ipac's badge on Summit.

3 Other retail investment and platforms includes AMP Personalised Portfolio and Flexible Lifetime investments. 4 Q1 21 inflows and outflows have been restated in Other retail investment and platforms to include Flexible Lifetime investments reported in AWM following the transition of the

MAG to AMP Investments within AWM.

5 External platforms comprise AMP administered, Asgard manufactured platform products.

6 Other includes AUM managed by AMP Investments on behalf of external clients, including Resolution Life Australasia.

7 Transfers, rollovers in and other includes the transfer of accumulated member balances into AMP from both internal (e.g. retail superannuation to allocated pension/annuities) and external products.

#### **Q1 22 AUM**

|                                              | Q4 21   | Q1 22 Net cashflows |                     |                  |            |                        |                     | Q1 22   |
|----------------------------------------------|---------|---------------------|---------------------|------------------|------------|------------------------|---------------------|---------|
| AUM (A\$m)                                   | AUM     | Super<br>annuation  | Pension<br>payments | Other<br>pension | Investment | Total net<br>cashflows | Other<br>movements1 | AUM     |
| North                                        | 61,407  | 129                 | (325)               | 510              | 188        | 502                    | (2,139)             | 59,770  |
| Summit, Generations and iAccess              | 6,519   | (76)                | (30)                | (64)             | (50)       | (220)                  | (198)               | 6,101   |
| Other retail investment and platforms2       | 808     | -                   | -                   | -                | (93)       | (93)                   | (24)                | 691     |
| External platforms                           | 3,109   | (34)                | (12)                | (42)             | (91)       | (179)                  | (104)               | 2,826   |
| Total Platforms                              | 71,843  | 19                  | (367)               | 404              | (46)       | 10                     | (2,465)             | 69,388  |
| Total retail superannuation3                 | 33,139  | (257)               | (81)                | (167)            | -          | (505)                  | (925)               | 31,709  |
| Total corporate superannuation4              | 29,797  | (599)               | (7)                 | (2)              | -          | (608)                  | (859)               | 28,330  |
| Total Master Trust                           | 62,936  | (856)               | (88)                | (169)            | -          | (1,113)                | (1,784)             | 60,039  |
| Total Other                                  | 7,544   | (99)                | -                   | (11)             | (115)      | (225)                  | (280)               | 7,039   |
| Total Australian wealth management           | 142,323 | (936)               | (455)               | 224              | (161)      | (1,328)                | (4,529)             | 136,466 |
| Assets under administration - SuperConcepts5 | 17,435  | -                   | -                   | -                | -          | -                      | (249)               | 17,186  |
| Total AUM and administration                 | 159,758 | (936)               | (455)               | 224              | (161)      | (1,328)                | (4,778)             | 153,652 |

| AUM (A\$m)              | Q4 21   | Q1 22   |
|-------------------------|---------|---------|
| AUM by product          | AUM     | AUM     |
| Superannuation          | 83,847  | 80,410  |
| Pension                 | 36,356  | 34,928  |
| Investment              | 22,120  | 21,128  |
| Total                   | 142,323 | 136,466 |
| AUM by asset class      |         |         |
| Cash and fixed interest | 26%     | 28%     |
| Australian equities     | 27%     | 29%     |
| International equities  | 35%     | 32%     |
| Property                | 7%      | 6%      |
| Other                   | 5%      | 5%      |
| Total                   | 100%    | 100%    |
|                         |         |         |
|                         | Q4 21   | Q1 22   |
| AUM (A\$b)              | AUM     | AUM     |
| Closing AUM             | 142.3   | 136.5   |
| Average AUM             | 140.5   | 137.1   |

1 Other movements include fees, investment returns, distributions, taxes and foreign exchange movements.

2 Q4 21 AUM restated in Other retail investment and platforms to include Flexible Lifetime investments reported in AWM following the transition of MAG to AMP Investments within AWM.

3 Retail superannuation includes A\$7.0b in MySuper (Q4 21 A\$7.2b).

4 Corporate superannuation includes A\$15.6b in MySuper (Q4 21 A\$16.3b).

5 SuperConcepts assets under administration includes AMP SMSF, Multiport, Cavendish, SuperIQ, Moore Stephens Annual, Ascend and SuperConcepts platforms, but does not include Multiport Annual, SuperConcepts Accountants Outsource, SMSF Managers and MORE Superannuation.

#### **New Zealand Wealth Management**

| Cashflows by product (A\$m)         |       | Cash inflows |       | Cash outflows | Net cashflows |       |  |
|-------------------------------------|-------|--------------|-------|---------------|---------------|-------|--|
|                                     | Q1 22 | Q1 21        | Q1 22 | Q1 21         | Q1 22         | Q1 21 |  |
| KiwiSaver                           | 126   | 147          | (116) | (141)         | 10            | 6     |  |
| Other1                              | 72    | 89           | (144) | (197)         | (72)          | (108) |  |
| Total New Zealand wealth management | 198   | 236          | (260) | (338)         | (62)          | (102) |  |

| AUM (A\$m)                          | Q4 21  |                    | Q1 22 Net cashflows |                        | Q1 22               |        |
|-------------------------------------|--------|--------------------|---------------------|------------------------|---------------------|--------|
|                                     | AUM    | Super<br>annuation | Investment          | Total net<br>cashflows | Other<br>movements2 | AUM    |
| KiwiSaver                           | 5,778  | 10                 | -                   | 10                     | (385)               | 5,403  |
| Other1                              | 6,396  | (30)               | (42)                | (72)                   | (421)               | 5,903  |
| Total New Zealand wealth management | 12,174 | (20)               | (42)                | (62)                   | (806)               | 11,306 |

1 Other includes superannuation, retail investment platform and legacy products.

2 Other movements include fees, investment returns, distributions, taxes, as well as foreign currency movements on New Zealand AUM.

#### **AMP Capital**

|                                          |         | Q4 21 AUM                                         |                                |                 | Q1 22 Net cashflows |                        |                     | Q1 22  | Q1 22                            |
|------------------------------------------|---------|---------------------------------------------------|--------------------------------|-----------------|---------------------|------------------------|---------------------|--------|----------------------------------|
| AUM (A\$m)                               | AUM     | Strategic<br>Initiatives -<br>Transferred<br>AUM1 | Restated<br>post<br>transfers2 | Cash<br>inflows | Cash<br>outflows    | Total net<br>cashflows | Other<br>movements3 | AUM    | Uncalled<br>Committed<br>Capital |
| Australian equities                      | 30,230  | (30,230)                                          | -                              | -               | -                   | -                      | -                   | -      | -                                |
| International equities4                  | 40,827  | (38,558)                                          | 2,269                          | 309             | (132)               | 177                    | (200)               | 2,246  | -                                |
| Fixed interest4                          | 52,425  | (43,657)                                          | 8,768                          | 169             | (879)               | (710)                  | (261)               | 7,797  | -                                |
| Infrastructure equity                    | 18,832  | (372)                                             | 18,460                         | 275             | (469)               | (194)                  | 38                  | 18,304 | 1,061                            |
| Infrastructure debt5                     | 6,857   | (6,857)                                           | -                              | -               | -                   | -                      | -                   | -      | -                                |
| Real estate                              | 24,297  | (973)                                             | 23,324                         | 1,182           | (1,457)             | (275)                  | 1,115               | 24,164 | -                                |
| Alternative assets and direct investment | 4,305   | (4,305)                                           | -                              | -               | -                   | -                      | -                   | -      | -                                |
| AUM by asset class (closing)             | 177,773 | (124,952)                                         | 52,821                         | 1,935           | (2,937)             | (1,002)                | 692                 | 52,511 | 1,061                            |
| AUM by asset class (average)             | n/a     | n/a                                               | 52,833                         | n/a             | n/a                 | n/a                    | n/a                 | 53,679 | n/a                              |
| External                                 | 94,810  | (45,816)                                          | 48,994                         | 1,886           | (2,860)             | (974)                  | 623                 | 48,643 | 1,061                            |
| Internal                                 | 82,963  | (79,136)                                          | 3,827                          | 49              | (77)                | (28)                   | 69                  | 3,868  | -                                |

1 Transferred AUM captures: MAG AUM transferred to AMP Australian Wealth Management, GEFI AUM sold to Macquarie Asset Management and the sale of the

Infrastructure Debt platform to Ares.

2 Restated Q4 21.

3 Other movements include fees, investment returns, distributions, taxes, foreign exchange movements and real estate debt refinancing.

4 Remaining international equities and fixed income represent AMP Capital's 14.97% share of CLAMP AUM.

5 The sale of the Infrastructure Debt platform to Ares completed in February 2022. Under the arrangements Infrastructure Debt Funds II-IV (Q1 22: A\$6.0b; Q4 21: A\$6.2b) are subject to management and sub-advisory arrangements with Ares. AMP Capital does not earn any AUM management fees and retains rights to carried interest from these funds, subject to performance hurdles being met.