AMP tightens belt
AMP has announced it will put capital management plans on hold and may cut future dividend payments as uncertain markets bite into company income.
During the first quarter the company’s total net cashflow sank 83% to $129 million.
CEO Craig Dunn told last week’s AGM the market slowdown has reduced superannuation income, which fell 2% in the first quarter. Assets under management have also declined by 6%.
“We expect cashflow in 2008 for both industry and AMP to come off some way from the record flows experienced last year,” Mr Dunn said.
AMP will defer planned capital adjustments until markets stabilise and may alter its policy to distribute 85% of underlying earnings in dividends.
During the first quarter the company’s total net cashflow sank 83% to $129 million.
CEO Craig Dunn told last week’s AGM the market slowdown has reduced superannuation income, which fell 2% in the first quarter. Assets under management have also declined by 6%.
“We expect cashflow in 2008 for both industry and AMP to come off some way from the record flows experienced last year,” Mr Dunn said.
AMP will defer planned capital adjustments until markets stabilise and may alter its policy to distribute 85% of underlying earnings in dividends.