AMP Wealth Management reports 1H 21 results and simplifies fees and sustainable investing for clients

12 August 2021

Financial performance:

  • KiwiSaver specialist AMP Wealth Management has today reported 1H 21 net profit after tax of $21 million, an increase of 11% on 1H 20, which reflects stronger investment markets and tight cost control.
  • 1H 21 assets under management of $13.5 billion increased $1.1 billion (9%) from 1H 20.
  • Net cash outflows of $267 million in 1H 21 (compared to net cash inflows of $21 million in 1H 20) are largely due to a heightened competitive environment.
  • 1H 21 controllable costs of $18 million were down 10% on 1H 20, with a cost to income ratio of 38.6% (decreasing 4.6 percentage points on 1H 20).

Blair Vernon, Chief Executive, AMP Wealth Management New Zealand, said:

“This result reflects a solid performance as we continue to renovate our business, including further enhancing and simplifying our products and services to deliver more value for clients.

“In July, we successfully completed key stages of the transformation of our investment offer which simplifies sustainable investing and investment fees for clients while aiming to deliver stronger returns through an index management investment approach.

“BlackRock Investment Management has been appointed to provide key investment services and we will draw upon their expertise and global insights to deliver further benefits to clients through our exclusive funds.

“Sustainable investing has been embedded into all AMP named funds, not just a specific single fund, with a focus on helping to reduce the impacts of climate change. This means our clients can focus on making fund choices based on their risk tolerance and know that our strict sustainability criteria will help to align their investments with their beliefs and values.

“Contrary to some views in the market we also believe that doing good doesn’t mean sacrificing healthy returns, and in many cases, we’ve seen sustainable funds outperform their equivalent traditional funds.

“To provide further clarity for AMP KiwiSaver Scheme members, fees within the AMP KiwiSaver Scheme have reduced significantly and the fee structure has been simplified by combining the management and administration fee into one single amount.

“The reduction in fees to 79bps across AMP named funds, alongside our offer of help and guidance to clients, supported by a range of market-leading services and digital tools, in our view represents real value for money. It’s one reason AMP KiwiSaver Scheme members have an average member balance that is 17% higher than the industry average .

“In 1H 21, building on our commitment to fully-flexible working to support the wellbeing of our people we exited two of three floors in our Auckland CBD premises. Releasing two thirds of our footprint also supports our Toitu carbonzero certification and our broader sustainability targets, including further reducing our carbon emissions which we cut by over 70% in 2020 compared to 2019, while we’re on track to decrease this by an additional 30% by the end of 2021 (this includes an estimation of the electricity usage for our employees while working from home).”

Find out more about the ways in which AMP Wealth Management supports its clients, communities, people, and the environment here.

- ENDS

For further information please contact

027 406 2048