AMP Wealth Management reports 1H 19 financial results

8 August 2019
For immediate release

AMP Wealth Management New Zealand reports 1H 19 financial results

AMP Wealth Management New Zealand has today reported its half-year financial results to 30 June 2019.

The specialist wealth management and advice business delivered a resilient performance in the face of increased competition and reported operating earnings of $22.7 million. Earnings were impacted by the removal of internal distribution fees and product revenues from AMP Life after 1H 18. On a comparable basis, operating earnings were steady.

Assets under management increased slightly to $12.5 billion and AMP’s KiwiSaver Scheme continues to grow and generate positive cashflows with $5.6 billion in funds under management (an increase from $5.2 billion in June 2018). Net cash outflows of $262 million in 1H 19 (1H 18: $54 million net cash inflows) were the result of increased competition in the market, regular retirement withdrawals and first home buyer withdrawals.

AMP Group today announced its new strategy to create a client-led, simpler, growth-oriented business. The strategy includes an intent to further localise AMP Wealth Management New Zealand (including its majority-owned subsidiary AdviceFirst) and explore divestment to realise its value.

Blair Vernon, Chief Executive AMP Wealth Management New Zealand, said: “We delivered a solid performance in a challenging period, primarily driven by the strength of our AMP KiwiSaver Scheme and significant investment in creating our standalone wealth management and advice business.

“The separation of the life insurance and mature business in New Zealand was largely complete by the end of June 2019, and AMP Wealth Management New Zealand is focused on the renovation and simplification of our distribution channels and continuing to improve our product and service offering for our clients locally.

“AMP Wealth Management New Zealand is now largely standalone, which positions our business to explore the logical next step of divestment. There’s no immediate impact on our day-to-day business, products or services, and continuing to serve our clients remains our number one priority.”

2019 priorities:

Mr Vernon noted:

“We will complete the renovation of our distribution channels, which includes the re-contracting of independent financial advisers while continuing to grow and strengthen our advice proposition through our employed advisers, both under our AMP brand and through AdviceFirst.

“The completion of the repatriation of information technology services to New Zealand provides a state-of-the-art technology platform, which will enable us to respond locally to further enhance the digital experience for our clients, including the ongoing release of additional improvements to our online portal and My AMP app.”

Other key highlights for AMP Wealth Management New Zealand include:

AMP KiwiSaver Scheme members received $30.5 million in first home withdrawals as AMP Wealth Management New Zealand helped 1,029 AMP KiwiSaver Scheme members to buy their first home. AMP KiwiSaver Scheme members also withdrew $60.2 million to help fund their retirement.
The AMP KiwiSaver Scheme continues to be a key growth engine for the wealth management business, with approximately 9.8% of the total KiwiSaver market as at 30 June 2019 and around 225,000 KiwiSaver clients. The average member balance in the AMP KiwiSaver Scheme increased to $24,992, compared to the industry average of $19,246 (as at 31 March 2019).
Moving to exclude any direct investments in companies associated with the manufacturing of firearms and components banned under the amendment to the Firearms Bill. This decision is consistent with our responsible investment philosophy, which excludes investments in a range of companies on moral and ethical grounds.
AMP employed advisers visited dozens of workplaces all over New Zealand to provide helpful guidance and personalised advice to every day Kiwis face-to-face.
Through its employed financial advisers AdviceFirst has provided personalised financial advice reviews to more than 1,500 clients, with detailed personalised statements of advice to more than 1,000 clients, helping them to realise a better future.
Launching a free, online video series aimed at encouraging more New Zealanders to take an active interest in their financial wellbeing – go to amp.co.nz/morefrommoney.
Proudly supporting 'My Life To Live', a photo exhibition coordinated by Living Wage Aotearoa New Zealand and Changemakers Resettlement Forum celebrating the immense contribution of refugee background workers in New Zealand.
Continuing its partnership with Key To Life Trust and got behind Gumboot Friday in support of Mike King to continue efforts to improve awareness of mental health issues, including a series of corporate and client-facing wellbeing seminars hosted by AdviceFirst.

• ENDS

© Scoop Media