AMP Financial Services has recorded a strong third quarter with net inflows for its financial planning division up 55 per cent.
AMP Financial Planning returned $3.5 billion of inflows and net cashflows of $217 million. The division’s net flows for the year to date were up 65 per cent.
AMP Financial Services managing director Craig Meller attributed the positive results to the recent Simpler Super changes.
Meller said customers brought forward superannuation contributions to the second quarter to take advantage of the changes to superannuation and pensions.
The company’s retail super experienced a 77 per cent increase in inflows to $1.6 billion, while flows rose to $2.2 billion for the quarter. Almost 90 per cent of the outflows were made by customers aged 55 and over.
AMP’s Super Consolidation Account accounted for just over $700 million of transfers from superannuation to pensions. Around 70 per cent of retail super outflows were retained by AMP.
Allocated pensions and annuities experienced record inflows for the quarter of $1.3 billion, with net flows of $952 million.
Discretionary super contributions fell sharply following unusually strong inflows in the second quarter ahead of the June 30 deadline. Corporate Super inflows were flat for the quarter at $647 million.
“We expect the rest of the year to be strong, with flows into retirement income products continuing at very high levels,” Meller said.
“The impact of recent regulatory changes to superannuation, particularly the move to make payouts tax free for people over the age of 60, means that superannuation will remain the preferred long term savings vehicle for Australians,” he said.
Meller said the group looks set for a strong finish to 2007, with a number of new mandate wins worth around $80 million expected to transition in the fourth quarter. Around $170 million in mandate wins are expected to transition in the first half of 2008, primarily in the second quarter.
Overall for the quarter AMP Financial Services recorded a total net outflow of $5 million, compared with a net inflow of $244 million in the previous corresponding period.
