AMP pressures Labor on super

By a staff reporter

AMP Ltd has implored the Labor government to mirror the Coalition's committment to make no negative changes to superannuation for three years if it wins the September federal election.

At the group's annual general meeting chairman Peter Mason said, "I invite the Government to make a similar commitment, so we can shift the focus back to what really matters".

"As Australia’s leading superannuation company, I believe it’s time we drew a line in the sand," he said.

AMP also said it needed to make structural changes to capitalise on improving investor sentiment and expects the business environment to stay challenging this year.

Chief executive Craig Dunn said AMP expected the business environment in Australia to remain challenging this year, particularly given tighter regulation and lower margins.  

"Although improving investor sentiment both domestically and internationally is welcome given AMP’s significant operational leverage to stronger investment markets," he said.

The group posted a turnaround in cash flows for the March quarter for subsidiary AMP Financial Services, driven by retail growth.

AMP Financial Services posted cashflows of $95 million for the quarter, against a negative result of $292 million year-on-year.

Total Australian wealth management was $89.8 billion, up 4.8 per cent on the December quarter, while AMP Capital assests under management rose 1.6 per cent to $130.7 billion for the period.

Mr Mason said the global financial crisis had "accelerated a transformative change in AMP’s operating environment – a shift that is structural, not cyclical".

This shift is characterised by a desire from customers for more control over their investments, more transparency and more value for money," he said.

"Even if GDP growth and share markets again reach the heights of several years ago, there must be significant change in both the services provided by AMP and the way in which those services are provided by AMP and by financial advisers."

In the full year to December 31, AMP posted a net profit of $704 million, a two per cent rise on the previous corresponding period.