Slide 1: ASX Announcement: Presentation by Craig Meller
ASX Announcement 24 June 2010 For personal use only Manager Manager Company Announcements Office Market Information Services Section Australian Stock Exchange New Zealand Stock Exchange Level 4, 20 Bridge Street Level 2, NZX Centre, 11 Cable Street Sydney NSW 2000 Wellington New Zealand Announcement
Slide 2: Reshaping AMP Financial Services
For personal use only Reshaping AMP Financial Services Craig Meller Managing Director, AMP Financial Services 24 June 2010
Slide 3: Overview
Overview For personal use only Australian wealth management industry is in midst of large-scale change Still a highly attractive industry AMP Financial Services (AFS) responded early and decisively to changes Opportunities exist across the value chain AFS is taking advantage of these oppor
Slide 4: Three key forces for change
Three key forces for change For personal use only 1. Global financial crisis 2. Regulatory uncertainty 3. Changing consumer sentiment 3
Slide 5: Wealth management still an attractive sector
Wealth management still an attractive sector Super and life insurance CAGRs 12% and 14% respectively over next 10 years For personal use only 7,000 Total superannuation and pension assets Superannuation market expected to increase from 6,000 A$1.0t to A$7.3t by 2028 5,000 Growth driven by asset
Slide 6: The need for financial advice remains undoubted
Wealth management still an attractive sector For personal use only The need for financial advice remains undoubted 4.5 million Australians not saving enough for an adequate retirement1 More than 2 million Australian families underinsured2 Australian consumers have record debt levels3 But…
Slide 7: Regulatory environment increasingly clear
Regulatory environment increasingly clear For personal use only Regulatory review AMP response Ripoll inquiry • Prospective ban on super, pension and • Removing commissions on super, pension and investment product commissions from 1 July investment new business from 1 July 2010 2012 • Fiduciary duty
Slide 8: AMP responded decisively to address short-term issues and long-term opportunities
AMP responded decisively to address short-term issues and long-term opportunities For personal use only 1. Maintained financial strength 2. Increased cost efficiency 3. Embracing regulatory change 4. Investing for growth through the cycle 7
Slide 9: Investing for growth and responding to regulation: two-fold approach
Investing for growth and responding to regulation: two-fold approach For personal use only Address three key consumer needs (own home, protect family and income, and save for retirement) by: 1. creating compelling customer offers product / solution segmentation / targeting modular approach 2
Slide 10: Industrialising wealth management
Industrialising wealth management For personal use only Major product and advice changes Product Distribution Manufacturing • COIN software • Renovating our core super offer, • Paraplanning with modular approach • Horizons Academy • Renovating risk insurance offer • Rabo Financial Advisers • Perso
Slide 11: Building greater capacity
Building greater capacity For personal use only Strong planner value proposition Horizons Academy – changing the face of financial planning Over 200 graduates to date Increasing intake by 50% in 2010 Average graduate age 35, average industry age 54 50% more efficient than planners who jo
Slide 12: Market-leading planner force
Market-leading planner force AMP financial planners growing faster than the market For personal use only 2009 AMPFP and Hillross planner numbers increased 5% and 7% respectively Average age and turnover of an AMP financial planner is significantly below market average 51% of financial planne
Slide 13: Resilient net retail cashflows
Resilient net retail cashflows For personal use only Total retail managed funds (excl CMTs) rolling net cashflows ($m) over past 2 years to March 2010 of six largest participants by FUM – Marketer view 3,404 2,532 2,517 2,273 1,757 611 A$m AMP Group AXA Australia Group BT / Westpac Group Commonwealt
Slide 14: Manufacturing – AMP Flexible Super
Manufacturing – AMP Flexible Super AMP Flexible Super For personal use only Super account Retirement account Transition to Retirement Super account + retirement account Investment Core Select Choice options Super Easy Cash Super Easy Cash Super Easy Cash Super Easy Balanced Super Easy Balanced Super
Slide 15: Manufacturing – pro-actively managing inforce business in a changing environment
Manufacturing – pro-actively managing inforce business in a changing environment For personal use only Core product renovation will enable four super and pension products to close, with new pricing structure to be introduced New pricing will deliver an average 14bps reduction in management fees
Slide 16: Manufacturing – AMP Personalised Portfolio
Manufacturing – AMP Personalised Portfolio For personal use only AMP’s Personalised Portfolio, a separately managed account offer for the HNW market, launched in Jan 2009 and upgraded in May 2010 with new online functionality Brings together professionally managed model share portfolios, managed
Slide 17: Summary
Summary For personal use only Australia will continue to deliver superior economic performance Wealth management industry will continue to deliver outstanding growth opportunities AMP Financial Services is strongly positioned to capture the upsides of these opportunities 16