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Market mayhem whacks $30b hole in AMP’s funds under management

AMP has suffered a $30 billion hit to assets under management across its wealth, capital and banking divisions last quarter, as the coronavirus pandemic roiled the global economy and financial markets.

The wealth giant revealed $10.7 billion had been wiped over the past quarter from funds managed by global investment arm AMP Capital, in a market update on Thursday. Chief executive Francesco De Ferrari said there were significant falls in equities, fixed income and key commodities prices in March. The group reported $308.7 billion in total assets under management across both AMP Capital and its wealth management arm.

AMP chief executive Francesco De Ferrari says demand for financial advice has never been higher.

AMP chief executive Francesco De Ferrari says demand for financial advice has never been higher. Credit: Peter Braig

“We have seen some recovery since the quarter-end, but expect market volatility to continue and the economic impact of the pandemic to emerge over the remainder of the year,” Mr De Ferrari said.

AMP Capital was looking for opportunities amid the downturn, Mr De Ferrari said, including infrastructure investment and debt. Losses in the capital arm were slightly offset by gains in their Australian dollar value, as a higher portion of these assets were exposed to foreign currency “which benefited from the depreciation”, the company said.

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