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REFILE-UPDATE 2-AMP's fund management division sees $1.7 bln in outflows, shares tumble

Published Oct 22, 2020 08:03 Updated Oct 22, 2020 21:18
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(Removes Reuters Instrument Code of unrelated company)

* AMP shares mark biggest intraday pct drop since July 31

* AMP Capital hit by repayments

* Assets under management at Australian wealth arm edge up

Oct 22 (Reuters) - AMP Ltd AMP.AX on Thursday reported net cash outflows of about A$2.4 billion ($1.7 billion) from its flagship fund management arm in the third quarter, as coronavirus-induced market turmoil and governance concerns led to higher client repayments.

The 160-year-old company said its AMP Capital division saw net external cash outflows of A$1.1 billion in the quarter ended Sept. 30, with A$1.3 billion in net internal cash outflows.

AMP shares fell as much as 5.2% in its biggest intraday pct drop in nearly three months.

The company, which recently ceded its position as Australia's largest wealth manager to IOOF Holdings IFL.AX , put all its assets under review last month, setting in motion a potential sale or break-up.

AMP has seen its profit and reputation plummet after a public inquiry into Australia's financial sector exposed systemic wrongdoing. has also been hit by allegations of inappropriate conduct towards a female employee by a senior manager. portfolio review, announced in this quarter, is progressing in parallel and being managed without delay to our transformation," Chief Executive Officer Francesco De Ferrari (NYSE:RACE) said in a statement on Thursday.

AMP added it was seeing some improvement, with net cash outflows from its Australian wealth management arm broadly flat during the quarter. However it expects another A$450 million to go in the fourth quarter due to the loss of a client.

The company said assets under management at the Australian wealth arm edged 0.3% higher to A$121.4 billion at the end of September from three months earlier, while in New Zealand, it rose 1.2% to A$11.8 billion. ($1 = 1.4092 Australian dollars)

REFILE-UPDATE 2-AMP's fund management division sees $1.7 bln in outflows, shares tumble
 

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