AMP North adviser inflows rise 22%

AMP North inflows from independent financial advisers (IFAs) increased 22% as its platforms business' assets under management (AUM) increased to $74.3 billion.

In a quarterly business update, AMP reported that net cash inflows to platforms increased 32% from $152 million in Q1 2023 to $201 million in Q1 2024.

However, pension payments increased to $500 million from $392 million year-over-year, which the wealth management firm said reflected the increase to minimum drawdown limits from July 2023.

The positive net cashflows, along with stronger investment markets contributed to platforms AUM increasing by $3.2 billion to $74.3 billion.

AMP North inflows from IFAs were up 22% on Q1 23 to $544 million and managed portfolios on the "flagship platform" reached $14.9 billion in AUM.

AMP's superannuation and investments business, formerly master trust, reported an increase in AUM to $54.1 billion from $51.9 billion the prior quarter.

AMP said the increase reflected positive investment markets but was offset by net cash outflows and pension payments.

"In the first quarter we saw an increase in Platforms net cashflows, improvements in Superannuation & Investments net cash outflows, and AUM up across both of these businesses," AMP chief executive Alexis George said.

"Our wealth management businesses, platforms, superannuation and investment and New Zealand, benefited from the positive investment markets, while in Australia pension payments increased as we continue to see the impact of the lifting of minimum drawdown limits that came into effect in July 2023.

"Inflows from independent financial advisers have continued to grow in our platforms business, increasing by 22% on Q1 23 reflecting the continued strategic focus on platform functionality and investment choice that has helped to attract this market. Managed portfolios on our flagship platform North reached $14.9 billion in AUM, continuing the strong growth trajectory since its launch in 2018."

Meanwhile, AMP Bank's total book was down over the quarter to $23.5 billion from $24.4 billion the previous quarter which the firm said was in line with its strategy to "prudently manage loan growth" given margin pressures.

"We are navigating the headwinds faced by AMP Bank by carefully managing our loan and deposit books, to help address margin pressures," George said.

"We are making good progress on the development of our digital small business and consumer bank offer, launching in Q1 25, to lessen funding risks over the medium term by broadening the customer base and introducing a compelling transaction account offer that will help diversify and build deposits."