Transformation of investment offer delivers further value for clients
- KiwiSaver specialist AMP Wealth Management has today reported FY21 net profit after tax of $42 million, an increase of 11% on FY20.
- FY21 assets under management of $12.9 billion decreased $0.4 billion (-2.7%) from FY20. This was partly offset by the 2021 rebound in investment markets.
- Net cash outflows of $1.1 billion in FY21 increased by $1 billion from FY20. This was primarily due to the conclusion of the business’ term as a KiwiSaver default provider, contributing a net outflow of $0.7 billion in 2HY21. AMP Wealth Management remains a substantial participant in the overall KiwiSaver market with $6.1 billion in assets under management, reflecting growth of 13% on FY20 in its non default AMP KiwiSaver Scheme funds.
- FY21 controllable costs of $38 million were down 5% on FY20 primarily due to lower employment and information technology costs, as the business continues to simplify and transform its operating model and lower property costs following a reduction in office footprint. The FY21 cost to income ratio of 39.5% decreased 3 percentage points on FY20.
Blair Vernon, Chief Executive, AMP Wealth Management New Zealand, said:
“In a challenging year for many Kiwis and businesses against the backdrop of the impacts of Covid-19 this is a solid result which reflects our strong focus on ensuring good client outcomes.
“In July 2021 we delivered a new investment approach with a focus on sustainable investing, which resulted in a material fee reduction for our AMP KiwiSaver Scheme clients of up to 40%.
“As part of the transformation, our commitment to helping reduce the impacts of climate change through our core business delivered an initial reduction of ~60% in exposure to carbon emissions across our entire investment portfolio.
“The transition to an index management investment approach and the appointment of BlackRock Investment Management will deliver ongoing value for our clients.
“Looking ahead we will continue to innovate our business including further enhancing and simplifying our products and services to deliver more value for clients. In the first half of the year this includes our intention to deliver a new digital only managed fund product, leveraging our state-of-the-art technology and our sustainable investment approach to help our clients continue to grow their investments.”