AMP cash flows plummet

THIRD-quarter cash flows have slumped at Australian fund manager and insurer AMP, with business at the company's flagship funds business Henderson Global Investors down a massive 80%. AMP today revealed cash flow figures for the September quarter which showed total net cash flows fell 40% to A$3.2bn (£1.1bn), from A$7.8bn for the same quarter the previous year.

The cash flow figures are derived from the difference between inflows in new investments, premiums and contributions, and withdrawals and insurance payouts.

Henderson was the AMP unit hardest hit by the market tremors that followed the 11 September attacks on the US, with business showing a net inflow of A$415m, down 80% from A$2.07bn a year ago.

There was no reference in the statement, however, to expectations of job cuts among Henderson's 800-strong London staff.

'The events of 11 September directly impacted on net cash flows for this quarter,' AMP chief executive Paul Batchelor said. Despite the result, Batchelor said he still expected double-digit growth in core recurring margins for the full 2001 year

The Sydney-listed company does more than 60% of its business in Britain, where it is rebranding its businesses, except Henderson, as AMP.