AMP Limited (ASX: AMP) released its third-quarter assets under management (AUM) and cashflows this morning. Here’s what you need to know before the market opens.
AMP is a diversified financial services company which has its primary operations in financial advice, including financial planning and wealth management. A big part of its business is licensing other planning groups to provide advice. AMP also has capabilities in investing (AMP Capital), banking and insurance.
Assets under management, or AUM, can be broken down into AMP’s four main businesses – Australian Wealth Management, AMP Capital, AMP Bank, and New Zealand Wealth Management.
Australian Wealth Management AUM increased to $133.2 billion during the quarter, up 0.37% from Q2. This was a result of both higher inflows and outflows, with an extra $200 million outflow from the introduction of Protecting Your Super legislation.
AMP Capital AUM also increased to $202.2 billion, up 1.3% from Q2. On top of this, AMP Capital has a further $5.4 billion available for investment.
AMP Bank deposits increased by $600 million to $14.5 billion, with growth being led by strong performance in retail and platform deposits. The total loan book increased by $100 million during the quarter to $20.3 billion.
New Zealand Wealth Management was the only division to see AUM decrease, from $11.963 billion to $11.77 billion. This was mostly due to a weaker NZ dollar.
AMP CEO Francesco De Ferrari said each of the businesses performed broadly as expected and highlighted the strength of AMP Capital.
“AMP Capital continues to experience strong demand for its real assets investment capabilities, with especially strong infrastructure debt flows and commitments of US$6.2 billion received for its fourth infrastructure debt strategy,” he said.
Time To Buy AMP?
AMP does seem to be gradually recovering from the Royal Commission and it’s good to see AUM increasing. However, when I take a long-term view of the company, I see a share price that is down nearly 72% over the last ten years and I’m not convinced that AMP has a competitive advantage over the likes of Commonwealth Bank (ASX: CBA) or Macquarie Group Ltd (ASX: MQG).
I’d rather invest in one of the proven businesses in the free report below.
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Disclosure: At the time of writing, Max does not have a financial interest in any of the companies mentioned.