AMP Private Wealth gains traction

Still in test phase

By Vishal Teckchandani
Fri 20 Aug 2010

AMP has announced its high net-worth advice division has gained nearly $200 million in FUA while still being in test phase.

Wealth management firm AMP has said its high net-worth advice division, AMP Private Wealth Management, has gained traction as markets and profits improved.

The division has attracted $184 million in funds under advice (FUA) and 170 clients' as at 31 July, AMP chief executive Craig Dunn said.
But he said there were no immediate plans to ramp up the division's adviser numbers.

"Well it's still early days, it's still really in the pilot phase," he said.

"We have been very pleased with the success we have had to date but we are yet to ramp up numbers. We will do that at a later time provided that success continues."

The division commenced in the second half of 2009.

AMP reported overall underlying profit for the six months to June 2010 gained 4.4 per cent to $383 million.

Dunn said the company's result was bolstered by robust core business performance, disciplined cost control and profit margins holding up well.

"Our growth initiatives gained real traction in the half as we've moved decisively and proactively to position ourselves well for the future," he said.

"We have successfully introduced a fee-for-service model across our Australian planner network well ahead of the industry, launched a market-leading product range that appeals to a broader customer base, built on our expanded presence in Asia and introduced more distribution channels, including a bigger presence in the [independent financial adviser] market."

Dunn also reiterated that AMP was still interested in purchasing Axa Asia-Pacific Holdings.

He said that rival suitor National Australia Bank's proposal to sell Axa's North platform to IOOF Holdings to appease the competition regulator would not improve market competition.

"Our view is that that proposal will not lead to an improvement in competition but I don't want to say any more than that until we've lodged our submission on that to the [Australian Competition and Consumer Commission]," he said.

"I will just remind you though why we have been strategically attracted to Axa, and that goes back principally to the distribution footprint in that business and the capacity that would allow us to improve our platform scale and also with that and our existing AMP planners it will allow us to enter the wrap market and provide greater competition."

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