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.
It has also been hit by allegations of inappropriate conduct towards a female employee by a senior manager.
"Our portfolio review, announced in this quarter, is progressing in parallel and being managed without delay to our transformation," Chief Executive Officer Francesco De Ferrari 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.
(Reporting by Shriya Ramakrishnan, Nikhil Kurian Nainan and Sameer Manekar in Bengaluru; Editing by Maju Samuel and Stephen Coates)
