AMP Flexible Super continues to attract significant inflows and reached $1.4 billion in assets under management at the end of December 2010, adding $400 million in the last six weeks of the year.
Most growth took place in the pension version of the product, which has attracted $837 million in assets since the launch of the product in May 2010, the group said yesterday at the presentation of its annual results.
The vast majority of the retirement customers in the product, 84 per cent, opted for the product's premium version, the Choice option, while only 2 per cent choose for the lowest price version of the product, the Core option.
The superannuation version of AMP Flexible Super had attracted $541 million by the end of last year.
"The superannuation option in AMP Flexible Super is extending our reach into newer and younger market segments as it was designed to do, as well as maintaining and extending our existing customer base in superannuation," AMP chief executive Craig Dunn said.
Although AMP Flexible Super's assets consist partly of the group's closed superannuation product, AMP Flexible Lifetime Super, these funds contributed a relatively small portion to the overall assets.
"Only $90 million has been sourced from our closed superannuation product, which is well within the assumptions," Dunn said.
AMP Flexible Super also saw a higher level of rollovers into client account balances than its previous products.
"We are seeing significant consolidation activity by customers in the new product," Dunn said.
"The average balances for both options are 50 per cent higher than the average balances in the closed superannuation and retirement products," Dunn said.
AMP has also recently rolled out an employer version of AMP Flexible Super, which has attracted $18 million in assets from 3700 customers so far.
"The employer sponsored version product has only just been rolled out and we are very optimistic about the product's potential, particularly in the small business end market," Dunn said.
AMP reported yesterday its full year result over the 12 months to 31 December 2010.
The group reported a 2 per cent lower underlying profit of $760 million, compared to $772 million the year before.
Dunn said that although the global economy was likely to experience ongoing bouts of uncertainty and market volatility the medium term outlook for the wealth management industry in Australia remained attractive.
He also said the proposed merger with Axa Australia was on track, and AMP proposed yesterday to appoint Axa chairman Rick Allert and Axa director Patricia Akopiantz to the board of AMP following a successful merger of the two companies.
