AMP Financial Planning (AMPFP), Australia's second-biggest dealer group, reported lower cash flows in the September quarter, as the credit crunch intensified.
The group's net cash flows in the period stood at $76 million, down 65 per cent from the $217 million AMPFP reported last September, an AMP statement to the market said.
Inflows for the quarter were $2.08 billion, down 41 per cent from the prior corresponding period, it said.
"This reflects a significant fall in discretionary superannuation contributions and [September quarter] 2007 flows, impacted by legislative driven transitions to retirement," the statement said.
Cash outflows were $2 billion in the September quarter, better than the $3.3 billion outflows AMPFP experienced in the previous corresponding period.
Outflows were unusually high last year, due to a large number of transitions to retirement, an AMP statement said.
"The improvement also reflects AMP planner focus on both customer retention and advice, which has limited outflows in the current volatile environment," it said.
AMP-owned Hillross Financial Services, with around 300 planners, experienced net cash flows of $39 million in the September quarter, compared to $89 million in the previous corresponding quarter. Net cash flows were impacted by lower discretionary contributions, the AMP statement said.
