Australia’s largest provider of superannuation AMP has reported that first quarter net cashflows at AMP Financial Services have fallen to $42 million from $236m a year earlier. This came as inflows slowed and outflows increased.
AMP reported that contemporary wealth management cashflow fell 47.4 per cent to $177m. Australian life insurance inflows grew 25 per cent to $141m. Assets under management for the contemporary wealth business gained 6.1 per cent to $55 billion by March 31 from a year earlier.
Assets under management at AMP Capital Investors rose 3.4 per cent to $98.8bn.
Net cashflows at Australian wealth management business Axa Asia Pacific Holdings’ jumped to negative $634m. AMP completed the takeover of Axa APH on March 30. Net cashflows at Axa APH’s New Zealand business slowed to $NZ34m ($24.9m).
Assets under management in the Australian business fell 5 per cent to $30.1bn, while they increased slightly to $NZ5.6bn in the New Zealand business.
The AMP figures came as latest figures revea,ed volatility is back in fashion for super fund rolling 12 month returns have again fallen back to 5 per cent for the 12 months to March.
According to Rainmaker, which conducts research for SelectingSuper, three and five-year returns are even less impressive at just 1.3 per cent and 2.3 per cent per annum, respectively. This time last year super funds were averaging 19 per cent, nearly four times today’s level.
Rainmaker’s Research Director Alex Dunnin said, “But the good news is that long-term 10-year returns, while being tolerable at 5.5 per cent per annum are 2.3 per cent per annum ahead of inflation over the past decade.”
Returns were down because of “falling rolling 12-month returns from Australian and international shares” due to the 12 per cent rise in the Australian dollar. Australian shares returned just 3.8 per cent for the past 12 months compared with 9 per cent for the year to end February. The top workplace super funds over the past year were Health Super with 8.7 per cent, and Catholic Super, 8.2 per cent.
Sourced and edited from The Australian.
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