Insights

AMP (ASX:AMP) share price gains 4% as $7b of funds go down the drain

Here’s how the financial services company performed over the 3 months ended 30 September
The post AMP (ASX:AMP) share price gains 4% as $7b of funds go down the drain appeared first on The Motley Fool Australia. –

The AMP Ltd (ASX: AMP) share price is in the green today after the company released an update on its quarterly performance.

Over the third quarter of calendar year 2021, AMP Capital’s assets under management (AUM), which are owned by investors, fell by $7.3 billion.  

In brighter news, AMP’s Australian wealth management unit’s cash outflows dropped after the early release super scheme – designed to support Australians through COVID-19 ­– was scrapped.

Commenting on the company’s future direction, AMP’s CEO Alexis George said: “We have a clear focus on our priorities ahead, including to deliver the demerger of our Private Markets business from AMP in the first half of next year.”

At the time of writing, the AMP share price is $1.165, 4% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) and the All Ordinaries Index (ASX: XAO) are both up around 0.1%.

Let’s take a closer look at how AMP performed over the quarter ended 30 September 2021.

AMP’s mixed quarterly performance

The AMP share price is higher this morning on news of a quarter full of ups and downs.

In the spirit of giving bad news first, AMP Capital’s AUM dropped 4% over the quarter, driven by $12 billion of cash outflows. For context, over the same quarter of 2020 AMP Capital saw cash outflows of just $2.4 billion.

As of 30 September, AMP Capital managed $180.3 billion of investors’ funds.

Additionally, while AMP’s New Zealand wealth management unit saw its AUM boosted by around $300 million to $12.9 billion last quarter, its cash outflows grew by 66%.

Its cash outflows came to $39 million for the period. The increased costs were partly because AMP’s status as a default KiwiSaver provider wasn’t renewed. AMP remains a non-default KiwiSaver provider.

However, AMP’s Australian wealth management saw positive returns and lesser cash outflows. That lead its AUM to end the quarter at $131.2 billion. That’s roughly the same as at the end of the previous period.

The unit’s cash outflows dropped by around $400 million, mostly because it paid no early release super payments after the Australian Government scrapped the scheme late last year.

Over the 3-month period, AMP’s Australian wealth management unit paid out $468 million of regular pension payments to its retired clients.

AMP Bank also saw its loan book increase by around $300 million to $21.3 billion, driven by a competitive owner-occupier housing market. The bank’s total deposits also increased by $1 billion, bringing its deposit-to-loan ratio to 81%.

Finally, the company’s North platform‘s AUM grew by $1.7 billion in the third quarter of 2021, reaching $58.6 billion. The platform’s cash flows came to $991 million, 21% more than in the prior corresponding period.

AMP share price snapshot

The struggles faced by the AMP share price are well known among market watchers. Many will likely be keeping a close eye on it ahead of the planned demerger of its Private Markets business.

Right now, its 25% lower than it was at the start of 2021.

The post AMP (ASX:AMP) share price gains 4% as $7b of funds go down the drain appeared first on The Motley Fool Australia.

Should you invest $1,000 in AMP right now?

Before you consider AMP, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and AMP wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Can the AMP (ASX:AMP) share price hit $1.25 by Christmas?

Here’s what happened to the AMP (ASX:AMP) share price in the FY21 third quarter

AMP (ASX:AMP) share price lifts amid new board appointments

Why this top broker sees 16% upside for the AMP (ASX:AMP) share price

How has the AMP (ASX:AMP) share price beaten the market over the past week?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!