AMP’s wealth management division experienced $199 million in cash outflows during the first quarter of 2017, which the firm put down to the migration of default funds to MySuper products.
In a first quarter cashflow update, AMP revealed big net cash outflows from its wealth management business of $199 million.
AMP reported an 11 per cent increase in wealth management inflows for the first quarter of 2017 (as compared with Q1 16), but this was offset by a 19 per cent increase in outflows.
The outflows have primarily been driven by the increased consolidation across the superannuation sector as Australians transition to MySuper, said AMP.
Superannuation funds have until 1 July 2017 to transfer existing default funds to a MySuper account.
AMP chief executive Craig Meller pointed to the "extraordinarily high level of activity across Australia's superannuation industry" at present.
AMP's customers are transitioning to MySuper, consolidating funds and allocating more investments to SMSFs, Mr Meller said.
"Wealth management cashflows have been strong since the beginning of Q2 as we near the 1 July 2017 effective date for superannuation contribution changes and from the transition of a large corporate super mandate to AMP," he said.
"Final MySuper transitions were completed in April and net cashflows in wealth management are positive for the year to date."
AMP's wealth protection division reported a 1 per cent fall in annual in-force premiums to $1.94 billion compared to the fourth quarter of 2016.
Large write-offs within AMP's life insurance business were the main contributor to a lacklustre 2017 full-year result for the business.
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