egolinews.com

AMP Limited (AMP) said net cashflows for the March quarter were $236 million, up 12% from $210 million in the first quarter of 2009. The company said the cashflows reflected both higher inflows and outflows resulting from improvements in market conditions and improving investor sentiment.

AMP said excluding corporate superannuation mandate wins, net cashflows increased 30% from $182 million in Q1 2009 to $236 million in the current quarter.

AMP Financial Services managing director, Craig Meller, said discretionary superannuation flows, however, remained subdued.

“We are pleased with the improving trend for the business,” Mr Meller said.

“Employer contributions remained resilient, while our investment product cashflows continued to recover, reflecting improved investor sentiment and the recovery in investment markets.”

The company said total net cashflows for retail superannuation and allocated pensions declined 13% to $100 million compared to the previous corresponding period as higher AUM levels lead to higher outflows.

AMP said cash inflows were $1.23 billion, a 27% increase on the pcp due to higher member contributions and higher roll-overs, while cash outflows increased from $855 million in Q1 2009 to $1.13 billion as improved investment markets resulted in higher member withdrawal balances.

The company said corporate superannuation net cashflows dropped from $250 million a year ago to $190 million.

Corporate superannuation cash inflows fell 4% to $671 million.

AMP said employer contributions increased due to a higher number of members following mandate wins in 2009.

Cash outflows increased 8% on Q1 2009 to $481 million due to higher withdrawal balances from higher investment markets, the company said.

As at 1030 AEST, AMP shares were down 8c to $6.10.

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