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AMP LIMITED — Interim / Quarterly Report 2012
Oct 25, 2012
64379_rns_2012-10-25_b1c98b29-f870-4acb-ae43-8cac001d0cca.pdf
Interim / Quarterly Report
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26 October 2012
Manager ASX Market Announcements Australian Securities Exchange Level 4, 20 Bridge Street Sydney NSW 2000
Manager
Market Information Services Section New Zealand Stock Exchange Level 24, NZX Centre, 11 Cable Street Wellington, New Zealand
Announcement No: 33/2012 AMP Limited (ASX/NZX: AMP)
AMP Limited reports third quarter cashflows, AUM and business update
Please see the attached media release.
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Public Affairs T 02 9257 6127 E [email protected] W AMP.com.au/media AMP_AU
AMP Limited Level 24, 33 Alfred Street, Sydney NSW 2000 Australia ABN 49 079 354 519
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26 October 2012
Public Affairs Tel: 02 9257 6127 Email: [email protected] Website: AMP.com.au/media AMP_AU
AMP Limited reports third quarter cashflows, AUM and business update
AMP Limited today reported cashflows for AMP Financial Services (AFS)[1] and the Group’s assets under management (AUM) for the third quarter to 30 September 2012.
AFS net cashflows were $605 million for the quarter compared to a net cash outflow of $335 million for Q3 11.
Australian Contemporary Wealth Management AUM at 30 September 2012 was $94.2 billion, up 14 per cent on 1H 12. This includes $10 billion of AUM in AMP SMSF. AMP Capital Investors AUM at 30 September 2012 was $126.9 billion, up 3 per cent for the quarter.
AFS’s growth initiatives continued to deliver positive results in Q3 12 with growth in the business’ core contemporary platforms – predominantly North as well as AMP’s new business unit AMP SMSF.
Highlights for Q3 12 were:
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North cemented its position as a leading wrap platform with $3.7 billion in AUM, up 26 per cent on 30 June 2012. Net cashflows more than doubled to $644 million, up from $242 million in Q3 11, mainly due to stronger cash inflows, in part from the increased take-up of North by AMP’s aligned planner network.
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AMP Flexible Super AUM increased 15 per cent to $6.5 billion in Q3 12 compared to $5.7 billion on 30 June 2012. Net cashflows for Q3 12 were $639 million, compared to $788 million in Q3 11 due to lower internal product flows and higher pension payments on the back of higher AUM balances.
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Corporate superannuation net cash outflows were $116 million, compared with net cash outflows of $40 million in Q3 11, reflecting a mandate loss during the quarter.
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AMP SMSF, comprising Cavendish, Multiport, Ascend, and AMP’s 49 per cent shareholding in SuperIQ, had net cashflows of $209 million for the quarter, up from $40 million in Q3 11. As at 30 September 2012, AMP SMSF administered more than 9,000 funds, up from 3,090[2] member funds at 1H 12. This includes funds from the Cavendish acquisition (4,780) and from Smart Super (965) which was acquired by SuperIQ in the quarter.
1 AFS cashflows include AMP SMSF. 2 Restated from 1H 12.
AMP Limited 33 Alfred Street Sydney NSW Australia ABN 84 079 300 379 AFSL 233671
AMP Limited reports Q3 cashflows, AUM and business update …2
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External platforms had net cashflows of $194 million in Q3 12 compared to net cash outflows of $323 million in Q3 11. This increase is mainly due to a number of new financial planning practices joining Hillross during the period.
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New Zealand KiwiSaver net cashflows were $99 million for Q3 12, compared to $168 million for Q3 11 mainly due to the NZ Government reducing its matched KiwiSaver contributions. Total New Zealand AUM at 30 September 2012 increased 6 per cent to A$10.1 billion due to higher investment markets.
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AFS’s Mature net cash outflows were $144 million, an improvement on Q3 11 cash outflows which were $470 million, due to $320 million from the rollover of AXA’s National Preservation Trust product into the AMP mature book.
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AMP Bank’s mortgage book grew to $12.2 billion in Q3 12, up from $12.0 billion as at 1H 12, while its deposit book remained relatively stable at $8.5 billion. Retail deposits fell $460 million over the quarter due to a change in AMP Bank’s desired funding mix.
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Risk insurance annual premium income for AMP and AXA’s risk businesses increased 3.1 per cent at the end of the quarter to $2.0 billion compared to $1.9 billion in 30 June 2012.
Detailed cashflow and AUM data tables are attached.
Business update
Contemporary Wealth Protection experience
Similar to 2011, third quarter experience in Contemporary Wealth Protection has been poor. Experience losses were $37 million in Q3 12[3] compared to experience profits of $5 million in 1H 12. This reflected the volatile nature of experience from period to period across an in-force portfolio of $1.7 billion.
Total claims experience losses in 3Q 12 were $25 million while lapse experience losses were $12 million. Higher income protection claims were experienced across both the AMP and AXA life companies, due to lower rates of claims closure than in 1H 12.
Lapse experience on retail risk products deteriorated across both the income protection and lump sum businesses with more customers reducing their levels of cover and poorer lapse experience at higher premium levels.
AMP is taking steps to improve retention and claims management through expanding underwriting, claims and retention resources, targeted retention campaigns at both the customer and planner level and implementing new claims management policies focussed on high cost claims and earlier intervention.
| Media enquiries | Investor enquiries |
|---|---|
| Amanda Wallace | Stephen Daly |
| +61 2 9257 6168 | +61 2 9257 5207 |
| +61 422 379 964 | +61 432 755 637 |
| Jane Anderson | Howard Marks |
| +61 2 9257 9870 | +61 2 9257 7109 |
| +61 402 967 791 | +61 402 438 019 |
3 Unaudited figures.
AMP Limited reports Q3 cashflows, AUM and business update …3
Q3 12 Cashflows
| Cash inflows | Cash inflows | Cash outflows | Cash outflows | Net cashflows | Net cashflows | |
|---|---|---|---|---|---|---|
| Cashflows by product(A$m) | Q3 12 | Q3 11 | Q3 12 | Q3 11 | Q3 12 | Q3 11 |
| Australian contemporary wealth management | ||||||
| AMP Flexible Super1 | 1,560 | 1,414 | 921 | 626 | 639 | 788 |
| North2 | 1,071 | 523 | 427 | 282 | 644 | 242 |
| SMSF3 | 295 | 100 | 86 | 60 | 209 | 40 |
| Summit,Generations and iAccess(includingAssure)4 | 708 | 867 | 1,039 | 1,092 | (331) | (225) |
| Flexible Lifetime Super(superannuation andpension)5 | 581 | 677 | 1,218 | 1,314 | (637) | (637) |
| Other retail investment andplatforms6 | 79 | 122 | 165 | 210 | (86) | (88) |
| Total retail on AMPplatforms | 4,294 | 3,703 | 3,856 | 3,584 | 438 | 119 |
| Corporate superannuation andpensions7 | 769 | 737 | 885 | 789 | (116) | (52) |
| Corporate superannuation mandate wins | - | 12 | - | - | - | 12 |
| Total corporate superannuation | 769 | 749 | 885 | 789 | (116) | (40) |
| Total retail and corporate super on AMP Platforms | 5,063 | 4,452 | 4,741 | 4,373 | 322 | 79 |
| Externalplatforms8 | 1,140 | 766 | 946 | 1,089 | 194 | (323) |
| Total Australian contemporary wealth management | 6,203 | 5,218 | 5,687 | 5,462 | 516 | (244) |
| Total Australian contemporary wealthprotection | ||||||
| Individual risk | 336 | 310 | 159 | 136 | 177 | 173 |
| Grouprisk | 90 | 115 | 58 | 49 | 32 | 67 |
| Total Australian contemporary wealthprotection | 426 | 425 | 217 | 185 | 209 | 240 |
| Total Australian contemporary | 6,629 | 5,643 | 5,904 | 5,647 | 725 | (5) |
| Australian mature | 461 | 160 | 605 | 631 | (144) | (470) |
| Total Australia | 7,090 | 5,803 | 6,509 | 6,278 | 581 | (475) |
| New Zealand | ||||||
| KiwiSaver | 144 | 192 | 45 | 25 | 99 | 168 |
| Other | 190 | 177 | 265 | 204 | (75) | (28) |
| New Zealand | 334 | 369 | 310 | 229 | 24 | 140 |
| Total AFS cashflows | 7,424 | 6,172 | 6,819 | 6,507 | 605 | (335) |
| Australian contemporary wealth management - AMP Bank by product9 | ||||||
| Deposits(Supercash,Super TDs & Platform TDs) | 410 | 670 | ||||
| Deposits(Retail) | (460) | 215 | ||||
| Mortgages | 208 | 100 | ||||
| Cashflows by distribution channel(A$m) | ||||||
| AMP Financial Planning | 2,657 | 2,438 | 2,632 | 2,449 | 25 | (11) |
| Hillross | 866 | 494 | 491 | 703 | 375 | (209) |
| AXA Financial Planning/ Charter Financial Planning | 935 | 902 | 874 | 827 | 61 | 75 |
| Jigsaw advisers | 115 | 99 | 132 | 93 | (17) | 6 |
| ipacgroupadvisers and Tynan Mackenzie | 546 | 493 | 565 | 549 | (19) | (56) |
| Genesysgroupadvisers | 300 | 240 | 308 | 273 | (8) | (33) |
| Direct(includingcorporate superannuation) | 436 | 332 | 431 | 253 | 5 | 79 |
| Centrallymanaged clients and other | 662 | 186 | 318 | 265 | 344 | (79) |
| 3rdpartydistributors | 573 | 619 | 758 | 866 | (185) | (247) |
| Total Australia | 7,090 | 5,803 | 6,509 | 6,278 | 581 | (475) |
| New Zealand | 334 | 369 | 310 | 229 | 24 | 140 |
| Total AFS cashflows | 7,424 | 6,172 | 6,819 | 6,507 | 605 | (335) |
1 AMP Flexible Super is a flexible all in one superannuation and retirement account for individual retail and SME business.
2 North is a market leading fully functioning wrap platform which includes guaranteed and non-guaranteed options.
3 SMSF includes Multiport, SuperIQ, Ascend and Cavendish administration platforms. SuperIQ is 49% owned by AMP.
4 Summit and Generations are owned and developed platforms. iAccess and Assure are ipac badges on Summit.
5 Flexible Lifetime Super (superannuation and pension) was closed to new business from 1 July 2010. A small component of corporate superannuation schemes is included.
6 Other retail investment and platforms include Flexible Lifetime - Investments, AMP Personal Portfolio and Synergy.
7 Corporate superannuation and pensions comprise SignatureSuper, CustomSuper, SuperLeader and AXA Business Super.
8 External platforms comprise Asgard, BT Wrap, Macquarie Wrap, Solar and other margin earning platforms used by Genesys.
9 Represents movements in AMP Bank’s deposits and mortgage books.
AMP Limited reports Q3 cashflows, AUM and business update …4
Q3 12 AUM[1 ]
| Q2 12 | Q2 12 | Q3 12 Net cashflows | Q3 12 Net cashflows | Q3 12 Net cashflows | Total | Other | Q3 12 | ||
|---|---|---|---|---|---|---|---|---|---|
| AUM A$ AUM |
Super- i |
Pi Itt SMSF |
Oth | net movements AUM |
|||||
| net | |||||||||
| (m) |
annuato n |
enson nvesmen |
er | cashflows | 2 | ||||
| Australian contemporary wealth management | |||||||||
| AMP Flexible Super | 5,656 | 295 | 344 | - | - | - |
639 | 218 | 6,513 |
| North | 2,954 | 254 | 270 | 120 | - | - |
644 | 119 | 3,717 |
| SMSF | 1,914 | - | - | - | 209 | - |
209 | 7,908 | 10,031 |
| Summit, Generations and iAccess (including Assure) |
|||||||||
| 13,333 | (177) | (79) | (75) | - | - |
(331) | 695 | 13,697 | |
| Flexible Lifetime(superannuation andpension) | 22,953 | (362) | (275) | - | - | - |
(637) | 1,036 | 23,352 |
| Other retail investment andplatforms | 3,065 | (28) | (23) | (35) | - | - |
(86) | 160 | 3,139 |
| Total retail on AMPplatforms | 49,875 | (18) | 237 | 10 | 209 | - |
438 | 10,136 | 60,449 |
| Total corporate superannuation | 19,939 | (118) | 2 | - | - | - |
(116) | 605 | 20,428 |
| Total retail and corporate superannuation on AMPplatforms |
|||||||||
| 69,814 | (136) | 239 | 10 | 209 | - | 322 | 10,741 | 80,877 | |
| Externalplatforms | 12,495 | 72 | 11 | 111 | - | - |
194 | 607 | 13,296 |
| Total Australian contemporary wealth management |
|||||||||
| 82,309 | (64) | 250 | 121 | 209 | - |
516 | 11,348 | 94,173 | |
| Australian contemporary wealthprotection | 209 | 209 | (209) | ||||||
| Australian mature | 22,907 | 105 | (64) | (14) | - | (171) |
(144) | 310 | 23,073 |
| Total Australia | 105,216 | 41 | 186 | 107 | 209 | 38 |
581 | 11,449 | 117,246 |
| New Zealand | |||||||||
| KiwiSaver | 1,642 | 99 | - | - | - | - |
99 | 104 | 1,845 |
| Other | 7,894 | (2) | (1) | (74) | - | 2 |
(75) | 483 | 8,302 |
| New Zealand | 9,536 | 97 | (1) | (74) | - | 2 |
24 | 587 | 10,147 |
| Total AUM | 114,752 | 138 | 185 | (33) | 209 | 40 |
605 | 12,036 | 127,393 |
| Australian contemporary wealth management - AMP Bank by product | |||||||||
| Deposits(Supercash,Super TDs & Platform TDs) | 4,105 | 410 | 4,515 | ||||||
| Deposits(retail) | 4,486 | (460) | 4,026 | ||||||
| Mortgages | 12,036 | 208 | 12,244 |
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1 Reported AUM excludes shareholder capital.
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2 Other movements includes fees, investment returns, taxes, as well as foreign currency movements on New Zealand AUM.
Q3 12 AUM and API summary
| AUM (A$m) | Q2 12 AUM |
Q3 12 |
|---|---|---|
| AUM | ||
| Australian contemporary wealth management - AUM by product | ||
| Superannuation | 49,742 | 51,663 |
| Pension | 20,312 | 21,585 |
| Investment | 10,341 | 10,894 |
| SMSF | 1,914 | 10,031 |
| Total | 82,309 | 94,173 |
| Australian contemporary wealth management(excluding SMSF) - AUM by asset class | ||
| Cash and fixed interest | 33% | 33% |
| Australian equities | 34% | 34% |
| International equities | 22% | 23% |
| Property | 6% | 6% |
| Other | 5% | 4% |
| Total | 100% | 100% |
| AUM summary (A$b) | ||
| Australian contemporary wealth management | ||
| ClosingAUM(excludingSMSF) | 80 | 84 |
| ClosingAUM (includingSMSF) | 82 | 94 |
| AverageAUM(excluding SMSF) | 81 | 82 |
| Asset Management | ||
| AMP Capital | ||
| ClosingAUM | 123.3 | 126.9 |
| Average AUM | 124.3 | 125.3 |
| Risk insurance Annual Premium Income - API(A$m) | ||
| Australia | ||
| Individual lump sum | 930 | 978 |
| Individual income protection | 398 | 404 |
| Grouprisk | 354 | 353 |
| Total Australia | 1,682 | 1,735 |
| New Zealand | ||
| Individual lump sum | 193 | 200 |
| Individual incomeprotection | 36 | 35 |
| Grouprisk | 30 | 31 |
| Total New Zealand | 259 | 266 |
| Total API | 1,941 | 2,001 |