AMP's discretionary super contributions fall due to difficult market conditions.
Market volatility has led to a decrease in cashflows across AMP's external platforms as well as its retail and corporate superannuation business, according to AMP Financial Services managing director Craig Meller.
AMP Financial Services total net cashflows for the first 2008 quarter were $129 million, representing a drop of $624 million, compared to $753 million in March 2007.
Retail superannuation and pensions/annuities net cashflows were $263 million for the first 2008 quarter, down from $364 million in March 2007.
While corporate superannuation netflows were flat at $118 million, Meller said the business had won a number of recent tenders worth around $175 million. The mandate wins will transition in the second and third quarters of 2008.
AMP Financial Planning netflows for the quarter were $159 million compared to $266 million in March 2007.
While the first quarter is traditionally AMP's quietest period, Meller said difficult market conditions were likely to remain for some time which would continue to dampen investor sentiment.
"Regardless of market conditions there are still significant reasons for customers, particularly those close to retirement, to contribute strongly to superannuation," Meller said.
Meller said AMP remains well placed given its bias to more stable product cashflows such as superannuation contributions and its high proportion of advised flows.
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