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SuperConcepts reports ongoing outflows

SuperConcepts outflows

SuperConcepts has reported an ongoing outflows in its assets under management in the first quarter of 2020, continuing a trend seen across 2019.

SMSF service provider SuperConcepts has continued to record outflows in assets under management (AUM), according to the latest quarterly report from parent company AMP.

In an update of AUM and cash flow for the first quarter of 2020, provided by AMP to the Australian Securities Exchange, SuperConcepts reported a decline in cash flow of $2.77 billion for the quarter, dropping from $19.69 billion in the fourth quarter of 2019 to $16.92 billion of AUM at the end of March 2020.

The 16 per cent slide follows similar figures AMP reported in February when it released full-year results for 2019 and in which AUM for SuperConcepts fell by more than 26.2 per cent from the end of the 2018 financial year to the end of the 2019 financial year.

In the update, AMP stated the decline in AUM also took place across its wider Australian wealth management business, with total AUM declining from $134.5 billion in the fourth quarter of 2019 to $116.3 billion at 31 March 2020, which primarily reflected COVID-19-related market movements.

The financial services company noted total cash outflows of $7.7 billion, which included $564 million in regular pension payments to clients, $430 million related to exiting corporate super mandates and $205 million from the impact of the Protecting Your Super legislation, were offset by inflows of $5.8 billion.

This latter figure increased by $1.1 billion over the quarter, driven by a 41 per cent rise in flows onto the North platform, including $400 million from external financial advisers.

AMP chief executive Francesco De Ferrari said: “During this time of uncertainty, we have focused on supporting our clients while working to continue to execute on our strategy. We’re responding to a record level of client inquiries for advice and support as people weigh up important financial decisions.

“Markets in Q1 were extremely volatile, particularly in March, with significant falls in equities, fixed income and key commodities impacting our assets under management. We have seen some recovery since the quarter-end, but expect market volatility to continue and the economic impact of the pandemic to emerge over the remainder of the year.”

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