AMP Limited has refocused its strategy around superannuation, but outflows still proved problematic for the big wealth management group.
The company’s first-half report, released to the Australian Securities Exchange (ASX) today revealed net cash outflows of $4.4 billion including $1.2 billion in pension payments to clients in retirement and $900 million in early release superannuation payments.
AMP said it had processed approximately 120,000 applications for early release superannuation.
It noted that the previously announced exit of some corporate superannuation mandates had also impacted cashflows by $1.3 million.
“Despite these outflows, the underlying trends in cashflows are showing signs of improvement,” the company’s ASX announcement said.
Elsewhere in its ASX announcement, AMP included superannuation as being amongst the areas progressed as part of its broader transformation strategy.
Under the heading “build best-in-class super business” it said it had completed phase one of simplification in parallel with completion of the AMP Life transaction, reducing around 70 superannuation products to 11 with further consolidation to six to be completed in the new financial year.
It said it had also implemented a “super executive accountability regime” improving governance and management responsibility.