AMP last recorded positive cashflow in its superannuation division when Craig Meller was still CEO and not long before the Hayne royal commission was established by the Turnbull government.

Cashflow in the listed wealth management business’s superannuation operations has finally turned positive again, in the three months to 30 June this year, and even though the run-up to the end of a financial year is traditionally a strong period for inflows, AMP executive director Alexis George tells Investment Magazine: “I don’t want to undervalue that, because that’s the first quarter we’ve had positive cash flow since 2017, albeit it was June, so I’m taking that one.”

Last week AMP’s superannuation and investments division reported net cash outflows, not including pension payments (totalling $210 million) were $75 million for the half, a significant improvement from the outflow of$470 million in the same period a year earlier (excluding $205 million of pension payments). But it achieved positive net cashflow, again excluding pension payments, of $33 million in the June quarter.

Underlying net profit after tax (NPAT) was steady at $34 million, with an increase in asset-based income in the current period making for a one-off investment result reported in the previous corresponding period.

Margins continued to be tight, declining to 62 basis points from 64 last year, due in part to fee caps applying as assets under management increased.

AMP reported that controllable costs fell by 1.2 per cent, but variable costs increased by 7 per cent, which was due to “increased AUM and growth activity”.

Overall, AMP reported underlying NPAT of $131 million for the half-year, up from $120 million in the corresponding period the year before, and a statutory NPAT of $98 million, down from $103 million, reflecting “planned business simplification and litigation costs”. It declared a 20 per cent-franked dividend of two cents a share.

George acknowledges that positive cashflow in super “won’t be the state through the next couple of quarters” but says the strategy the business is pursuing continues to make progress.

“With a strong offer for our members we’re working towards sustainable positive cashflow in FY26,” she says.

“What we have to keep doing in that business is, firstly, we are now delivering top returns; we’ve always delivered top service; we have to maintain our reputation, because that hit that business hard; and then we’ve got to innovate.”

“We launched Lifetime [retirement income] solutions. We are pushing fast into digital advice and making sure we’re putting new modules up all the time to help people.”

Not just talk

But just as importantly, George says, AMP now has something it can actually take to market and not just talk about.

“In this case, it’s not running out talking to advisers, but hopefully you’ve seen some of the digital campaigns we’re launching there now that are a bit out-there and a bit against what AMP has been doing in the past,” she says.

“And we’ve got to believe in ourselves a bit here too.”

With a slate of initiatives to improve inflows, George says earnings will also benefit from “operating a simplified and more efficient business”.

She maintains that AMP has now “got the basics right”, which gives it a foundation to push into the corporate superannuation market.

“That’s an interesting one, “she says. “We’ve got service, we’ve got insurance, we’ve got something unique in Lifetime solution. No one else has that for the broad super base, but we had to improve our reputation. And yes, that was frustratingly slow to improve, but I think we’re there now. That taint of the past is gone.”

But a competitive advantage in any financial service is generally short-lived, with product features and service offerings quickly cloned or copied.  Last month the Insignia-owned MLC Super launched MLC Retirement Boost, which immediately drew comparisons to AMP’s MyNorth Deferred Lifetime Income account.

Having started to innovate on product, initially via its Lifetime solution, George says “we can’t stop”.

“We’re working on the next things as we talk now, but ours is in-market, we’re not thinking about it now, it’s in market,” she says.

“We have over the last couple of years really started to make sure we start thinking like a challenger, and that means we are not taking nine months to get one idea up and delivered.

“Of course, people will copy. That’s the greatest form of flattery, but we’re working on the next ideas right now. The first one we’ll do, and we’ll have a big launch in the next couple of weeks, [is] we will roll out rewards programs to our customers over the next few weeks.”