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AMP's fund management division sees A$2.4b in outflows, shares tumble
[BENGALURU] AMP Ltd on Thursday reported net cash outflows of about A$2.4 billion (S$2.31 billion) from its flagship fund management arm in the third quarter, as coronavirus-induced market turmoil and governance concerns led to higher client repayments.
The 160-year-old company said its AMP Capital division saw net external cash outflows of A$1.1 billion in the quarter ended Sept 30, with A$1.3 billion in net internal cash outflows.
AMP shares fell as much as 5.2 per cent in its biggest intraday percentage drop in nearly three months.
The company, which recently ceded its position as Australia's largest wealth manager to IOOF Holdings, put all its assets under review last month, setting in motion a potential sale or break-up.
AMP has seen its profit and reputation plummet after a public inquiry into Australia's financial sector exposed systemic wrongdoing.
It has also been hit by allegations of inappropriate conduct towards a female employee by a senior manager.
"Our portfolio review, announced in this quarter, is progressing in parallel and being managed without delay to our transformation," chief executive officer Francesco De Ferrari said in a statement on Thursday.
AMP added it was seeing some improvement, with net cash outflows from its Australian wealth management arm broadly flat during the quarter. However it expects another A$450 million to go in the fourth quarter due to the loss of a client.
The company said assets under management at the Australian wealth arm edged 0.3 per cent higher to A$121.4 billion at the end of September from three months earlier, while in New Zealand, it rose 1.2 per cent to A$11.8 billion.