Tough market conditions may have caused cash flows to plummet in 2008 so far but future prospects remain solid, AMP has told shareholders.
In the four months to April 2008, AMP Capital Investors and Contemporary Wealth Management assets under management have both fallen by 6 per cent to $104 billion and $53 billion respectively.
"Excluding mandate wins in our corporate superannuation business, our net cash flows for the first quarter of this year fell to $119 million down from $341 million in the first quarter of 2007," AMP chief executive Craig Dunn told the annual general meeting in Sydney yesterday.
The business was buoyed by several positive trends, including the improvement of the Australian wealth protection and the New Zealand businesses, Dunn said.
AMP has also achieved good retention of business and stable underlying cashflows in the corporate super business, he said.
Dunn said AMP was chasing five growth platforms. The first is improving efficiency and building its adviser network; its planner ranks swelled by a net 135 by the end of 2007.
It will also expand into Asia through AMP Capital Investors, build its high value customer base and reshape AMP Capital Investors into a high-value add investment manager.
The final AMP growth platform involves investing in assets like brand, technology and people.
"This is a more challenging environment for wealth management companies than we have experienced in a number of years," AMP chairman Peter Mason said.
"But AMP's financial strength is standing us in good stead in these conditions."
John Palmer, Brian Clark and Peter Shergold have been hired as non-executive directors, it was also announced at the meeting. They replace John Astbury and Richard Grellman.
