AMP LIMITED — Interim / Quarterly Report 2019

Oct 23, 2019

Media release

24 October 2019

AMP Limited Q3 19 AUM and cashflows update

• Growth in assets under management (AUM) in Australian wealth management and AMP Capital from strong investment markets. New Zealand wealth management AUM fell during the quarter mainly due to a weaker New Zealand dollar.

• Increased cash inflows in Australian wealth management offset by higher outflows including A$0.6 billion of regular pension payments and A$0.2 billion from the impact of new Protecting Your Super legislation.

• AMP Capital net external cash inflows of A$0.8 billion driven by strong infrastructure debt and real estate flows, lifting AUM above A$202 billion.

• AMP Bank experienced strong deposit growth of A$0.6 billion to A$14.5 billion, and the loan book increased to A$20.3 billion.

AMP Chief Executive Francesco De Ferrari said:

“Each of our businesses performed broadly as expected during the third quarter. AMP Capital continues to experience strong demand for its real assets investment capabilities, with especially strong infrastructure debt flows and commitments of US$6.2 billion received for its fourth infrastructure debt strategy.

“AMP Bank has again delivered exceptional value to clients, which is reflected in strong deposit growth and an increase in our loan book.

“Australian wealth management is taking significant steps to reinvent its business model, building a business around client needs. We have achieved stronger inflows during Q3, reflecting our improved fee competitiveness, but also higher outflows as the new Protecting Your Super legislation was implemented in Australia.”

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AMP Limited Q3 19 AUM and cashflows update...2

Commentary

Australian wealth management[1]

• Australian wealth management AUM increased to A$133.2 billion as at Q3 19.

• Q3 19 net cash outflows of A$1.9 billion driven by:

• Cash inflows of A$7.1 billion, A$0.6 billion higher than Q3 18, with North net cash inflows up 25 per cent to A$1.1 billion.

• Cash outflows of A$9.0 billion included A$0.6 billion in regular pension payments to AMP’s clients and A$0.2 billion due to the introduction of Protecting Your Super legislation.

• Higher North net cash inflows driven by a 31 per cent increase in inflows (A$0.3 billion) from external financial advisers. MyNorth fee reductions also led to higher internal flows.

• There were no material outflows from the loss of corporate super mandates during Q3 19. Corporate super outflows of approximately A$1.4 billion are expected during the next 12 months.

AMP Capital

• AMP Capital AUM increased to A$202.2 billion, with a further A$5.4 billion capital available for investment of which A$2.2 billion is earmarked for investments made but yet to close.

• Q3 19 net cash outflows of A$1.1 billion comprised:

  • Net external cash inflows of A$0.8 billion.

  • External cash inflows reflected strong momentum in infrastructure debt, where A$0.6 billion was invested in international assets, and real estate.

  • This was offset in part by public markets redemptions and China Life AMP Asset Management outflows.

  • o Net internal cash outflows of $1.9 billion followed outflows in Australian wealth management.

• Outside the quarter, AMP Capital’s fourth infrastructure debt strategy raised a record US$6.2 billion, which includes the final close of the AMP Capital Infrastructure Debt Fund IV (IDF IV), co-investment rights and separately managed account commitments.

AMP Bank[1]

• AMP Bank deposits increased by A$0.6 billion in Q3 19 to A$14.5 billion, with strong growth particularly in retail and platform deposits reflecting AMP Bank’s strategy to move to a more deposit-led funded Bank.

• AMP’s total loan book grew by A$0.1 billion to A$20.3 billion in Q3 19, with ongoing growth from the mortgage broker channel amid subdued market conditions.

New Zealand wealth management

• New Zealand wealth management AUM down slightly at A$11.8 billion for the period, mainly due to a weaker New Zealand dollar.

1 AMP Limited announced on 10 October that it is bringing together its banking and Australian wealth management business units into a combined organisation to be named AMP Australia.

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AMP Limited Q3 19 AUM and cashflows update...3

• New Zealand wealth management experienced net cash outflows of A$0.1 billion compared to A$0.1 billion in net cash inflows in Q3 18.

Media enquiries Investor enquiries Lachlan Johnston Howard Marks +61 466 026 702 +61 2 9257 7109 Catherine Woods Michael Vercoe +61 477 320 333 +61 2 9257 4244

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Q3 19 Cashflows

Australian wealth management

	Cash i	nflows	Cash o	utflows	Net ca	shflows
Cashflows by product (A$m)	Q3 19	Q3 18	Q3 19	Q3 18	Q3 19	Q3 18
North1	4,873	3,894	(3,776)	(3,013)	1,097	881
AMP Flexible Super2	469	666	(1,191)	(1,180)	(722)	(514)
Summit, Generations and iAccess3	130	162	(633)	(610)	(503)	(448)
Flexible Lifetime Super (superannuation and pension)4	352	395	(1,203)	(976)	(851)	(581)
Other retail investment and platforms5	27	44	(95)	(90)	(68)	(46)
Total retail on AMP platforms	5,851	5,161	(6,898)	(5,869)	(1,047)	(708)
SignatureSuper and AMP Flexible Super - Employer	744	668	(859)	(760)	(115)	(92)
Other corporate superannuation6	341	421	(745)	(709)	(404)	(288)
Total corporate superannuation	1,085	1,089	(1,604)	(1,469)	(519)	(380)
Total retail and corporate superannuation on AMP platforms	6,936	6,250	(8,502)	(7,338)	(1,566)	(1,088)
External platforms7	168	235	(543)	(632)	(375)	(397)
Total Australian wealth management	7,104	6,485	(9,045)	(7,970)	(1,941)	(1,485)
Cash inflow composition (A$m)	Q3 19	Q3 18
Member contributions	776	818
Employer contributions	893	920
Total contributions	1,669	1,738
Transfers and rollovers in8	5,435	4,747
Total	7,104	6,485

• 1 North is an award-winning fully functioning wrap platform which includes guaranteed and non-guaranteed options.

• 2 AMP Flexible Super is a flexible all in one superannuation and retirement account for individual retail business.

• 3 Summit and Generations are owned and developed platforms. iAccess is ipac’s badge on Summit.

• 4 Flexible Lifetime Super (superannuation and pension) was closed to new business from 1 July 2010. A small component of corporate superannuation schemes are included.

• 5 Other retail investment and platforms include Flexible Lifetime - Investments and AMP Personalised Portfolio.

• 6 Other corporate superannuation comprises CustomSuper, SuperLeader and Business Super.

• 7 External platforms comprise Asgard, Macquarie, BT Wrap platforms and Challenger annuities.

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

	Q2 19		Q3 19 Net C	ashflows				Q3 19
AUM (A$m)1	AUM	Super- annuation	Pension Payments	Other Pension	Investment	Total net cashflows	Other movements2	AUM
North	43,296	443	(287)	841	100	1,097	877	45,270
AMP Flexible Super3	15,193	(302)	(139)	(281)	-	(722)	348	14,819
Summit, Generations and iAccess	9,583	(211)	(57)	(149)	(86)	(503)	157	9,237
Flexible Lifetime Super(superannuation andpension)4	22,551	(715)	(42)	(94)	-	(851)	417	22,117
Other retail investment andplatforms	2,391	-	-	-	(68)	(68)	43	2,366
Total retail on AMPplatforms	93,014	(785)	(525)	317	(54)	(1,047)	1,842	93,809
SignatureSuper and AMP Flexible Super - Employer5	19,455	(96)	(11)	(8)	-	(115)	272	19,612
Other corporate superannuation6	12,427	(404)	-	-	-	(404)	189	12,212
Total corporate superannuation	31,882	(500)	(11)	(8)	-	(519)	461	31,824
Total retail and corporate superannuation on AMP platforms	124,896	(1,285)	(536)	309	(54)	(1,566)	2,303	125,633
Externalplatforms	7,807	(81)	(32)	(111)	(151)	(375)	118	7,550
Total Australian wealth management	132,703	(1,366)	(568)	198	(205)	(1,941)	2,421	133,183
Australian wealth management – SuperConcepts7,8Assets under administration	22,722							21,228
							(1,494)

1 AUM reflects a post separation view following the sale of Australian and New Zealand wealth protection and mature businesses to Resolution Life.

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

• 3 AMP Flexible Super includes A$0.4b in MySuper (Q2 19 A$0.3b).

4 Flexible Lifetime Super (superannuation and pension) includes A$5.4b in MySuper (Q2 19 A$5.5b).

5 SignatureSuper and AMP Flexible Super – Employer includes A$10.3b in MySuper (Q2 19 A$10.2b). 6 Other corporate superannuation includes A$6.1b in MySuper (Q2 19 A$6.1b).

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

8 Assets under administration at Q2 19 has been restated down by A$4.3b for correction of duplicated balances on funds migrated to new systems and finalisation of FY18 lodgements

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AMP Limited Q3 19 AUM and cashflows update...5

AUM (A$m)	Q2 19	Q3 19
AUM by product	AUM	AUM
Superannuation	80,581	80,649
Pension	35,712	36,041
Investment	16,410	16,493
Total	132,703	133,183
AUM by asset class
Cash and fixed interest	30%	30%
Australian equities	30%	30%
International equities	29%	29%
Property	6%	6%
Other	5%	5%
Total	100%	100%

AUM (A$b)	Q2 19	Q3 19
	AUM	AUM
ClosingAUM	132.7	133.2
Average AUM	130.8	133.1

AMP Capital

	Q2 19		Q3 19 Net cashflow	s		Q3 19
AUM (A$m)	AUM	Cash inflows	Cash outflows	Total net cashflows	Other movements1	AUM2
External	74,141	3,781	(3,015)	766	1,112	76,019
Internal	125,424	4,510	(6,381)	(1,871)	2,582	126,135
Total AMP Capital	199,565	8,291	(9,396)	(1,105)	3,694	202,154
AUM (A$b)	Q2 19	Q3 19
	AUM	AUM
ClosingAUM	199.6	202.2
Average AUM	196.4	201.3

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

• 2 AUM is invested capital. Committed real asset capital is excluded from AUM.

AMP Bank

AMP Bank by product	Q2 19	Other	Q3 19
Deposits and loans (A $m)	end balance	movements1	end balance
Deposits(super andplatform)2	5,333	145	5,478
Deposits(other)3	8,535	484	9,019
Loans	20,202	95	20,297

• 1 Represents movements in AMP Bank’s deposits and loan books.

• 2 At 30 Sep 2019, Super and Platform deposits include AMP Supercash and Super TDs (A$1.5b), North and platform deposits (A$4.0b).

• 3 Deposits (other) includes retail deposits, internal deposits, wholesale deposits and other deposits.

New Zealand wealth management

Chfl t A$	Cash i	nflows	Cash out	flows	Net cas	hflows
asows by produc (m)	Q3 19	Q3 18	Q3 19	Q3 18	Q3 19	Q3 18
KiwiSaver	222	219	(179)	(134)	43	85
Other1	119	183	(241)	(176)	(122)	7
Total New Zealand wealth management	341	402	(420)	(310)	(79)	92
AUM (A$m)	Q2 19	Q3 19 Net	cashflows			Q3 19
	AUM	Superannuation	Investment	Total net cashflows	Other movements2	AUM
KiwiSaver	5,351	43	0	43	(37)	5,357
Other1	6,612	(26)	(96)	(122)	(70)	6,420
Total New Zealand wealth management	11,963	17	(96)	(79)	(107)	11,777

• 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 Limited ABN 49 079 354 519