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AMP vulnerable to further outflows: Morgan Stanley

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AMP could face further risks according to analysts at Morgan Stanley, with the negative flow trends across the wealth giant expected to continue into the next quarter.

AMP issued its third-quarter update on Thursday, where it revealed it had seen around $3 billion in external outflows from both the investment and wealth arms in the three months up to September. 

Inflows of $818 million into the North platform had been offset by underlying outflows and $692 million in early super redemptions from the wealth segment. 

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AMP has also already flagged a further $450 million in outflows to come from a lost super mandate in the fourth quarter. 

In a research note, Morgan Stanley equity analyst Andrei Stadnik and research associate Jenny Hau noted AMP Capital has also lost “several” ESG mandates. In July, QSuper was one such example, when it pulled a $400 million responsible mandate from the investment business. 

Going on from that, AMP Capital is at risk of further outflows across the business, the Morgan Stanley analysis said.

The asset management division saw $1.3 billion in net internal outflows during the third quarter, reflecting money moving out of the wealth business.

Meanwhile in the banking business, AMP had cited a “highly competitive environment” for loans dipping by 1.4 per cent quarter-on-quarter. 

“We think the operating environment is tough, but AMP Bank could be facing company specific issues,” the Morgan Stanley note stated.

 

AMP vulnerable to further outflows: Morgan Stanley
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Sarah Simpkins

Sarah Simpkins

Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth. 

Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio. 

You can contact her on [email protected].

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