AMP Ltd’s net profit rose 32% to $884 million of the full year 31 December 2014, up from $672 million the previous year. Underlying profit was $1,045 billion compared with $849 million for the year ending 2013 thanks to double-digit growth in its operating earnings across all contemporary businesses.
“An increase of 23% and underlying profit reflects a strong result in our domestic franchises of wealth and investment management, targeted offshore expansion and improving performance in our wealth protection business”, said Craig Meller, chief executive.
The wealth protection arm has improved its operating earnings to $188 million compared with $64 million previously. The group also said that on its North platform, net cash flows improved 34% to $5.5 billion. North also enjoyed a 50% growth in customers with a total of over 76,000 customers on the platform last year.
As for its future of advice strategy, the group said it is investing in services, platforms and digital capabilities to improve adviser quality and productivity. Australian adviser numbers stood at 3,844 during the period.
via FINANCIAL STANDARD
# The numbers
new S I V proposals received mixed response
foreign nationals seeking residency in Australia under the significant investor these are (SIV) program will need to pump significant funds in a venture capital projects and small companies if proposal tabled by trade and Investment Minister Andrew Robb are approved.
The changes, which represent a significant departure from the initial requirement to invest only in low-risk government on is, I designed to inject much-needed funding into entrepreneurial projects. The reforms are aimed at better direct the investment through the Visa schemes in more dynamic areas of the economy including venture capital and small emerging companies, Robb said in a statement. Migrants will have to invest $1 million in an early stage, growth capital investment, through approved venture capital funds at least $1.5 million into emerging listed companies, through managed funds investing in Australian Stock Exchange listed companies. Proposed changes also include a ban on direct investment in residential property (potentially extending to residential property development)
If the proposal to gain approval that they will take effect from one July
Changes to premium best of these are (PI V), which, for an investment of $15 million, will give whole of permanent residency after one year rather than four years, also being explored.
Robb said these changes will attract more investment into high growth companies and will support the commercialisation of great Australian research. A key objective is to see more investment into wearers with support innovation and which provide new sources of growth capital, particularly in areas with thin capital flows.
While the changes are undoubtedly a burnt the smaller Australian business and venture capital projects, law firm Hall and Wilcox fears they could spell disaster for the entire scheme biggest Chinese investors want low-risk assets Eugene Chan, a special Counsel and head of China practice for the firm said the measures would introduce unacceptable risk the Chinese investors my understanding of Chinese inside the investors is that they may decide to opt out altogether. There is potential to it least diminish and possibly kill off the regime, he said we know the Chinese investors want low-risk investments something that they understand. The risk appetite is not there.
Chen said he agrees with the need to increase venture capital investment in Australia but warned the changes are unlikely to create a venture capital honeypot Chinese investors tend to see Australia as a destination for low risk, relatively stable returns, rather than speculation, Chen said every look at it from Chinese investors point of view the difference in venture capital returns between Australia and China is fast in China there are more opportunities to much more lucrative venture capital returns but the risk profile of the science or take the risk in Australia? We cannot assume that the law of residency will be enough as these investors have other options.
Chen said that for Wilcox clients had expressed prompt and strong concern that the changes we agree that more venture capital investment is needed were also agreed that land banking is wrong with the changes needed to be considered further as they may put the scream at risk.