Adviser inflows bolster AMP North as AUM hits $78bn

In a results announcement for the third quarter of 2024, AMP said its North platforms has seen net cash flows (excluding pension payments) of $750 million for the quarter, representing 76 per cent on the same period in 2023 ($426 million).

Flows coming from independent financial advisers also saw significant growth, up 47 per cent on Q3 2023 to $832 million and now comprises 36 per cent of total inflows. Pension payments were $516 million, up from $499 million in the prior corresponding period.

Total assets under management on North increased to $78.1 billion, up from $74.7 billion in Q2 2024, which AMP said was supported by positive investment markets.

It added that North’s managed portfolios offering continues to grow, increasing 12.3 per cent to $17.9 billion at the end of the quarter, up from $15.9 billion last quarter.

AMP chief executive Alexis George spruiked the interest in its platforms retirement solution, MyNorth Lifetime, from both “aligned and independent advisers”.

“During the quarter, AUM increased across platforms, superannuation and investments and New Zealand, and net cash flows also improved across these businesses,” George said.

“Platforms cash flows significantly increased on the prior period, while in superannuation and investments, outflows were almost halved, with a continued focus on our renewed member proposition and a new national advertising campaign for AMP Super.”

Superannuation and investments net cash flows (excluding pension payments) saw a $334 million outflow; however, this was an improvement on the $619 million outflow in Q3 2023 (excluding the $4.3 billion mandate loss in Q3 2023).

“This reflects resilient inflows and improved outflows, driven by the renewed focus on the member proposition,” AMP said.

Pension payments were $101 million, slightly down from $106 million in Q3 2023, while AUM increased to $55.8 billion ($54 billion in Q2 2024), “reflecting positive investment markets, partially offset by the net cash outflows and pension payments”.

In August, AMP announced a “strategic partnership” that would see it sell a majority stake of its advice licensees to Entireti and its minority stakes in 16 advice practices to AZ NGA.

Entireti is set to acquire AMP’s advice licensees and Jigsaw for $10.2 million, while the bank will retain a 30 per cent stake. At the same time, the Azimut-backed AZ NGA will acquire AMP’s minority stakes in 16 advice practices for $82.2 million.

The partnership, AMP said at the time, will create a “sustainable business model for AMP Advice” and transform the advice landscape in Australia.

According to George on Thursday, this transition is still set to be completed this year.

“The new partnership for our advice business is on track, with completion of the transaction to occur before the end of the year. Our focus remains on a smooth transition and maintaining the strong relationships with advisers as they move to the new joint venture with Entireti,” she said.

“Last week we completed the return of $1.1 billion of capital to shareholders, via on-market share buybacks and the recommencement of dividends. This is an important milestone in the transformation of AMP, as we continue to simplify and grow the business.”