AMP Ltd (ASX: AMP) shares are in the spotlight today.
In morning trade, the financial services company's shares are up 14% to a multi-year high of $2.01.
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Why are AMP shares jumping today?
The catalyst for today's move higher has been the release of the company's third quarter update before the market open.
According to the release, AMP's total assets under management (AUM) increased 3.6% quarter on quarter to $159.5 billion.
A key driver of this growth was its Platforms AUM, which increased 4.5% to $86.9 billion during the third quarter. This reflects resilient inflows and positive investment markets.
The good news is that its Platforms business is generating more and more cash. Platforms net cashflows increased an impressive 61.6% over the prior corresponding period to $1.2 billion.
Commenting on the strong-performing business, AMP's chief executive, Alexis George, said:
In Platforms, the strength of the North proposition continues to be recognised by advisers, with net cashflows up over 60% on pcp and AUM reaching close to $87 billion. We continue to innovate in the areas we know advisers value, such as Managed Portfolios, where AUM is now $23.8 billion. Our recently launched 'Grow' feature allows advisers to meet a broader range of client needs on North by blending across menus – a market-first.
Things weren't quite as positive for Superannuation & Investments business. Although its AUM increased 3.4% to $60.5 billion, it still reported net cash outflows of $241 million for the quarter. Though, this is an improvement on its net cash outflows of $334 million a year ago.
Speaking about the Superannuation & Investments business, George said:
In our Super business, net cashflows for the quarter improved almost 28% on the same period last year, bringing us closer to achieving a sustainable positive net cashflow position. We are continuing to drive member retention by providing exclusive access for AMP members to our intuitive digital advice journeys and our innovative retirement income solution, AMP Lifetime Super. In August we enhanced our proposition even further when AMP Super became the first major super fund to offer cashback rewards that can boost members' super balances – leveraging Citro's established rewards platform.
AMP's New Zealand Wealth Management business recorded net cashflows of $64 million (down 29%) and steady AUM of $12.2 billion.
Finally, the AMP Bank business' total loan book continued to be managed for value, leading to a modest 1.3% increase to $23.8 billion. AMP Bank's total deposits came in at $20.8 billion, up slightly from $20.5 billion in the second quarter.
No guidance was given for the remainder of the financial year.
