AMP Wealth Management New Zealand delivers solid performance and positive client outcomes

13 August 2020

Financial performance:

  • AMP Wealth Management has today reported 1H 20 operating earnings of $19 million, a decrease of 16% on 1H 19 due to the proactive closure of two legacy schemes in 2H 19, the conclusion of cost sharing arrangements with AMP Life, and the Q2 impacts of Covid-19.
  • 1H 20 assets under management (AUM) of $12.4 billion decreased by 3% on FY 19, with closing AUM of $12.8 billion. This was predominantly driven by investment market falls ($377 million), offset by positive net cash inflows of $21 million.
  • Net cash inflows of $21 million in 1H 20 have improved from net cash outflows of $262 million in 1H 19, largely due to improved KiwiSaver business performance. Overall, KiwiSaver generated net cash inflows of $156 million for 1H 20, while net cash outflows on platforms and other investments amounted to $135 million.
  • 1H 20 controllable costs of $20 million are 8% up on 1H 19 primarily due to the conclusion of cost sharing arrangements with AMP Life. 1H 20 cost to income ratio of 43.2% increased 6.3 percentage points on 1H 19.

Jeff Ruscoe, Acting Chief Executive, AMP Wealth Management New Zealand, said:

“Despite the challenges all New Zealanders collectively faced into in the past six months, we delivered a solid performance across our key business measures and further enhanced our products and services to improve outcomes for our clients.

“As a result of Covid-19, we saw an uplift in the number of clients seeking financial and retirement advice, which we believe is a positive sign for the long-term retirement prospects of more Kiwis. We responded by increasing the frequency of our regular communications to provide helpful guidance for clients during this period of heightened uncertainty and recruited new team members to respond to demand from clients seeking support, while innovating processes to enable clients to interact remotely such as completing statutory declarations over video chat to ensure those who needed hardship support could access it easily.

“At the same time, we ceased plans to divest our AMP Wealth Management New Zealand business and completed the separation of AMP Life. Our intent remains to continue to localise our business to allow us to grow and respond to the New Zealand market with a key focus on the ongoing transformation of our client experience through the regular deployment of new technology, like the frequent updates to our My AMP app. This included the introduction in May of our interactive projections tool, enabling clients to see their projected weekly KiwiSaver and New Zealand Retirement Trust incomes at retirement and understand the impacts of potential changes, helping them take control of their retirement journey.

“Like all businesses, we experienced some of the negative impacts of Covid-19, but some positives too, such as the wellbeing benefits for our team members of working remotely with most of our people saying they enjoyed spending less time commuting and more time with family and loved ones. As we have been working towards creating a truly flexible work model for a couple of years we decided to seize the opportunities and learnings through Covid-19 to accelerate our plans and move to adopt fully-flexible working on an ongoing basis and are seeking to move into new smaller collaboration and meeting-based premises outside the Auckland and Wellington city centres.

“We have also continued to deliver on our commitment to our communities and our environment and in July we announced that we are carbon neutral business backed by our Toitu carbonzero certification that represents emissions measured, verified and offset for 2019. This is the continuation of our broader sustainability journey, including converting all of our vehicle fleet to electric vehicles by 2025, and further reducing our emissions from travel and electricity.”

Other key 1H 20 highlights for AMP Wealth Management New Zealand:

  • Continued support of community partners, including Key To Life, Dignity NZ and Living Wage Aotearoa.
  • Supported positive outcomes for clients through the AMP KiwiSaver Scheme by providing $25.8 million in first-home withdrawals and $57.2 million in retirement withdrawals.
  • Provided helpful guidance through more than 155,000 client interactions.
  • More clients than ever accessed the My AMP app to take control of their retirement savings online, with more than 1.4 million logins.
  • Worked with employers across New Zealand to improve financial capability and retirement outcomes for their people by making it easy to access financial advice, including through more than 1,600 face-to-face meetings conducted with employees in their workplace.


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