AMP’s wealth management unit has suffered a 13.5% decline in the value of assets under management as market volatility sparked by the COVID-19 pandemic affected its business in the first quarter.

Assets under management fell to $116.3 billion in the three months to March from $134.5 billion in the preceding quarter.

Cash outflow during the quarter increased to $7.7 billion from $6.6 billion, and cash inflow rose to $5.8 billion from $4.7 billion. Net cashflow at the end of the quarter stood at $1.9 billion, up slightly from $1.8 billion at end-December.

“Markets in the first quarter were extremely volatile, particularly in March, with significant falls in equities, fixed income and key commodities impacting our assets under management,” CEO Francesco De Ferrari said.

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

The value of assets under management for super products declined to $70.6 billion from $81.7 billion.

In New Zealand, the wealth management arm’s cash outflow increased by $3 million to $327 million and cash inflow reached $271 million, up $1 million from the December quarter.