AMP Limited (ASX:AMP)

Investor Update

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Jul 21, 2025

Good afternoon, ladies and gentlemen, and welcome to this session of AMP's Wealth and Retirement business units. My name is Richard Nelson and I'm Head of Investor Relations. I'd like to begin by acknowledging the traditional custodians of the lands on which we are all gathering today. For us here at Key Quarter, it's the Gadigal people of the EORA Nation. I pay my respects to the elders, both past and present. Today we'll be hearing from four speakers and we have around two hours or so. The speakers will be, firstly, our CEO Alexis George. To set the scene, we'll then have our Director of Retirement, Ben Hillier. Edwina Maloney, the Group Executive for our North Platform business, will discuss the opportunities we see in that segment. Melinda Howes, our Group Executive of the Superannuation and Investments business, will look at the great progress we've been making in this business and what the future may hold. Given we have a lot of material to get through to share with you, we'd like to hold the Q&A session at the end. Now I'd like to turn things over to Alexis George. Thank you very much, Richard. It's great to have so many faces in the room. You often in these jobs get to present to blank pieces of screen these days, so it's very nice to see warm humans, certainly very excited to welcome you here today. As Richard said, we really want to give you a bit of an idea about where AMP's been in terms of wealth, but I think more particularly where we're going and why we really think we can win in that retirement space. There's a couple of things. I'll firstly give a bit of an overview of our strategy, the retirement opportunity that we see that exists, and then our resident expert on retirement solutions, Ben, is going to deep dive into our solutions across both platforms and our superannuation and investments business because we often get questions about the technical behind the scenes around those solutions. I wanted to give Ben the opportunity to explain that today. Of course, we're going to do a deep dive into both our platforms business and our S&I businesses with Melinda and with Edwina. Let's come to the strategy of AMP. I know some of this may be familiar to you, but I think it's important to reflect on what we've achieved over the last few years in those periods of time. We've simplified the portfolio, we've reduced the costs, we've strengthened the balance sheet, and we've established a strong and stable executive team that has started to deliver the results at the same time of doing these things. We've repositioned this business as a specialist in retirement and that's something we really want to spend a bit of time elaborating on today because it is important for our future. I believe here at AMP, we're well positioned now for growth, but we don't want to do it the way we've done it in the past. We want to approach this new era with the mind of a challenger brand, a brand that takes conscious risks, not unconscious risks, is more agile, embraces change, embraces technology, and is willing to get out there and have a go. At the same time, I want to acknowledge that we're a company with 175 years of legacy and heritage and certainly with that comes a promise of safety and security. That's something none of us want to compromise. If we look at the portfolio as we sit here today, we have four operating business units: our platforms business, our S&I business, our bank, and our New Zealand Wealth Management business. On top of that, we have our partnerships, which we won't be discussing today. If we look at where we've been, we really have refocused the portfolio towards the Australian wealth management businesses. In fact, at the end of 2024, $174 million of the $236 million operating profit, or nearly 75% of the contribution, came from these two businesses. If we also take into account New Zealand, which Melinda also manages, it is fairly aligned with those two businesses. We can share ideas, we can share deliverables, we can test things in the New Zealand market that we can later bring to Australia. We are a much more focused business, and as a result of that, I really believe we're positioned to lead in this retirement space in Australia. In North, we're number three in terms of our RAP platform for superannuation and pensions with about $80 billion in funds under administration. I think we've proven we can innovate in this space. We've delivered our retirement solutions in both the accumulation and the pension phase. We have North Guarantee, which is pretty unique in the market these days, and we really continue to innovate for our advisors in that space. In the S&I business, again, we're the only ones to have an accumulation for Lifetime Super for our customers, and that is pretty unique. In our digital advice solutions, we continue to add journeys, and as recently as last week, we added journeys in our AMP Bank, something we're not going to talk about in detail today. I hope you noticed that we started to reposition some of the deliverables in Bank towards supporting that wealth management business. The 10-year interest-only principal loan was exactly catering for that—a loan that gives more cash flows to those pre-retirees and retirees in the early years and perhaps less in the latter years when we know they don't need as much. We've got retirement covered from the financial perspective, but on top of that, we understand retirement isn't just about finances. We launched last year our Citro lifestyle app, which is really an app that caters for the social aspects of retirement, offering cash back offers for those things we always dream of—cruises, there's another cruise ship out there today—as well as creating a community for ideas. We'll soon be rolling that out, and Melinda will talk about that, to our customers across the AMP S&I business. I will note, of the customers in Citro, most are non-AMP today. Clearly we can position our company in retirement. Why do we think this is the right space for us to position? I think the data speaks for itself. We look at the population of Australia and we consider that by 2061, 33% will be in that retirement phase. We're all living longer, so what does that mean? We need more security around our income in retirement. We need to be able to make things simpler so we can have that dignified retirement. On top of that, we know there's a huge opportunity here. $750 billion of assets will move into the retirement phase over the next six years. This is a huge opportunity for us to really grab. We know Australians have a fear of running out and how do we as a major provider help them do this? Our brand, our solutions play to this. There are tailwinds in the industry and we're certainly well positioned to take advantage of the opportunity. Changing demographics. Let's come to Australia. We're one of the world's wealthiest countries. We know though that the household wealth of Australians is pretty much concentrated in two: their house and their superannuation. Increasingly, superannuation will become a very important part of this asset pool. On top of this incredible wealth, the financial literacy of Australians is virtually non-existent and we really have to do something about that if we want to help them with retirement. Despite the significant wealth, despite the changing demographics, despite our wonderful accumulation system, 80% of Australian retirees are unable to enjoy a comfortable retirement and don't know what to do about it. Let's look at this problem. Firstly, I think we'd all accept we have a wonderful accumulation system here in Australia. It is kind of the envy of the world. We know as a population 50% are still worried that they don't have enough money in retirement. They don't know why they're worried, but they know they're worried. We come to income generation. Australians, we're deemed to be a laissez-faire population. We're supposed to be take it easy, that is absolutely not the way we operate. Most Australians pass away with their wealth. They retire with that means they're giving their dependents the retirement they could have had. Surely we want to change that. We come to advice. We know that good advice really changes people's financial outcomes. We also know that we have a very complex system and not enough independent advisers to really be able to serve the complete population. We have to be able to solve that problem. We have to be able to give advice in all its contexts to be able to help people with these fears. We believe at AMP we have the opportunity to solve these problems. If we look at accumulation, we've got lifetime accumulation features, of course, we've got managed accounts, we've got options of every kind for our members and for our customers. On top of that, we also have these capital guaranteed solutions, an option for those that are a little more worried about the volatility of the markets, particularly in a period like we're in now. If we come to income generation, of course we've got account-based pensions, that goes without saying. Now we've got our lifetime pension solutions across our platforms business and we'll bring those to our S&I business soon. Then again, you've got these capital guaranteed options who help give that bit of safety for the people who may be a bit more worried. When we come to accessible advice, I think we really are a leader in AI and in putting out options to make our advisers more efficient for our platforms business. On top of that, that's not enough. We know not everyone can go to advisers. We know there's not enough capacity in the professional advice market to serve those customers. We're driving heavily into digital advice and intra-fund advice, helping meet the simpler needs of those particular customers and we want to continue to take on that journey. I'd say to you as we go into the next sessions, we've done a lot of hard work at AMP and we believe we're now positioned for that period of growth. I'm really looking forward to hearing more from the team. On that note, Ben, I'll bring you up. Thank you so much, Lex. It's great to be here and it's great to be at AMP. I feel incredibly honored to be leading the retirement function at AMP, where we have a history of 176 years of retirement leadership. One of the first solutions that we brought to the market 176 years ago was a solution where people would contribute during their working life and they'd be entitled to a retirement income that started back then at age 50, just short of life expectancy back then. That's a tradition that we have upheld and we are continuing to take forward with new modern solutions that are all about giving our members the confidence and comfort and retirement that they deserve. We've covered the entire market. We have solutions on our North Platform that are optimized for financial advisors. These are very sophisticated solutions that have full investment choice that keep the advisor in the retirement planning conversation for a lot longer, both before retirement. They can start retirement planning earlier with much greater effect and they can continue to add value all the way through the retirement journey. We've also optimized some solutions that we just recently launched on the AMP Super fund for those who may not get comprehensive advice, for those who are unadvised, perhaps or ideally use our new digital advice services and also our intra-fund advice services. Both of these solutions, both on the platform and on S&I, have retirement functionality but also pre-retirement. I'll take you through the mechanics of how in particular the pre-retirement works. We sometimes call it Lifetime Super because this is an opportunity to significantly add value to our members in retirement but also increase their engagement and their confidence in that important pre-retirement period. The way we've done it is it's obviously new account solutions on the North Platform that advisors can utilize. We've made it a default feature for our choice members on the S&I to really maximize the spread of those who can enjoy these greater levels of comfort and confidence. What we've created is a new category of hybrid solutions that sit between the traditional account-based pension or an annuity. About 96% of retirement money in Australia goes on account-based pensions. Only a small number goes into annuities. Why does most of it go into account-based pension? Because you've got the benefits of market-linked investments. You can keep investing in the markets and enjoy that risk return trade off. There's transparency in account-based pensions, you've got flexibility on the income and you can carry forward the investments from super to pension and enjoy no capital gains taxes if you're using a platform such as North. Our new Lifetime Solutions have those benefits of the account-based pensions. They have that transparency, they have the flexibility, they have the ability to invest in whatever the client or the adviser wants, which is really, really important. We've also taken the best features of an annuity, of course, the most important being income for life, for the client, for their spouse, where applicable. There's really strong Centrelink benefits and in fact we have the strongest ability to generate age pension eligibility of any solutions in the market. Because we've got those combination of best of both worlds, we actually have the ability to maximize income. You think about it, an account-based pension, it's your own bucket of cash effectively. People don't know how to spend that efficiently, effectively and not be at risk of running out of money. What do they do? As Lex said, they underspend, about 90% average account-based pension balance left at death. That's a terrible inefficiency. You think about the actual human cost. That's a lot of cruises, a lot of helping the kids, a lot of enjoyment in retirement. That's really missed. On the other hand, annuities, a traditional lifetime annuity has to be invested quite conservatively. There needs to be reserving of shareholder capital, of course, and as a result the income levels are quite compressed. By combining the best of both, we've seen in real life our MyNorth Lifetime members experience on average about 60% more income in retirement. A couple that might have been spending up to $100,000 spending $160,000, how many extra holidays is that? These are really life changing outcomes we're delivering for our members today. There are three things I want to focus on in terms of unpacking how we're delivering this. Number one, we obviously overcome the fear of running out. It's that most important, most common sense fear that retirees have as they approach retirement, running out of money. For good reason, we've focused our solutions on market-linked lifetime income streams. These are in comparison to traditional lifetime annuities where there was more of a set and forget, more compressed level of income. By investing in the market, this allows our retirees to be exposed to growth assets all the way through retirement, if that's their choice. The icing on the cake is the Centrelink eligibility. We've really taken advantage of some concessions that the government has put in place specifically to encourage us to do what we're doing, but also encouraged our members to take up these solutions in retirement. The government sees figures like that, 90% of super left unspent at death, as a terrible systematic waste. They're saying that superannuation is not achieving its policy objectives. As a result, they put concessions in place to encourage these sorts of solutions to be taken up. I'm going to take you through each of those in just a little bit more detail. First of all, I want to unpack. Look, how can we pay income for life and how can we do it with such high rates of income? If you think about it, for a provider of a lifetime income stream, there's three risks that you need to overcome. The first, and the biggest by far, is the market risk. We have completely mitigated market risk by market linking the income rates. We don't need to. We're not making expensive guarantees about the level of income. The incomes will generally rise over time with investment returns, but sometimes the income payment rates will fall. Think about it a little bit like a defined benefit scheme, but in reverse. You think about a defined benefit scheme. There's a pool of assets and then there's a pool of liabilities, which is the incomes that are payable to the participants. When the assets grow higher than expected, the sponsor can take some of that surplus and take it back for their own use. If there's a shortfall of assets, they'll need to tip in some extra assets to make up the shortfall. In that way, defined benefit schemes are always trying to get that 100% funding ratio. We're doing the opposite. When the liabilities, sorry, when the assets have fallen, we simply reduce the liabilities. The income payment rates will reduce. Most of the time when there's a surplus, which is what is going to happen by design, then the income rates will actually rise over time. I've just put some examples there on the slide there. For example, just say someone was receiving a lifetime pension worth $10,000 a year. We set our lifetime income streams relative to a 6% net investment return hurdle. If investment returns were 8%, that's 2% over the hurdle of 6%. That $10,000 income would rise to $10,200 the following year, just a 2% rise. Correspondingly, if the returns were 4%, that's 2% under the benchmark, the income would fall to $9,800. In that way, on the first of July, we're always resetting the liabilities to match the assets. It's never overfunded, it's never underfunded. This gives three really, really important characteristics. Number one, it means there's no shareholder capital required. We don't need to be reserving a lot of money to make this promise. It's very, very efficient. Similarly, that efficiency extends to the members. The payment rates we can provide to the members are basically very, very high, much higher than a traditional annuity because we're just spending all the capital on income, we're not having to reserve it. That also relates to the third point I want to make. There's no restrictions on how we invest this money because we're always adjusting liabilities to match the assets. We can invest in whatever we like, and we've taken that to the full degree of flexibility on the North Platform by letting our members and their advisors invest in whatever they want on the platform. This is the only solution in the market, perhaps the world. I'm not aware of anything else where you can have a lifetime income stream invested in whatever you like. Clients who are perhaps conservative can invest in more conservative assets and have a lower level of volatility in that income. Those who want to take on more risk are quite welcome to do so. That's by far the biggest risk that we've overcome completely by market linking the incomes. The second risk is that individual longevity risk, what we might call the idiosyncratic risk, the longevity risk, and that's where one individual doesn't know how long they're going to live, and we've overcome that through a time-honored method of simply pooling. We know some people are going to live longer than life expectancy, corresponding to those who live shorter than life expectancy. Once there's a pool of lives, we can balance those out. People who pass on earlier are going to leave some of their value behind, mortality credits, which basically are added to the investment returns for the benefit of those who live longer. Really, really simple. Again, this doesn't create a drag on the income levels because the only cost for this service is effectively what they're surrendering, some of that value that they didn't spend while they were alive. The third risk, and it's the smallest, is systematic longevity risk or the pool longevity risk. That is, does the pool of lives, do they live longer than we expect or shorter than we expect? We've outsourced this risk to our insurer. Currently, that's TAL, and TAL simply accepts that risk entirely, and they get paid the actual mortality credits, the amounts that people leave when they pass on. In exchange, they pay into the pool a contracted or guaranteed level mortality credits. Our members and our shareholders simply have no exposure to that risk. That's completely outsourced, but that's actually quite an efficient risk to manage. If you think about it from a life insurer's perspective, that's a natural hedge to their normal life insurance book. Hopefully, that's made sense. We're happy to take questions at the end about any of the mechanics there. The other thing I want to talk about is just unpack how the age pension works. Here's a bit of an Age Pension 101, 63%. Most Australians are eligible in retirement for some form of Centrelink. The balance between those getting the full age pension and the part pension is changing over time as superannuation balances are getting bigger and bigger. Basically, the determinant about whether you get a full pension, a part pension, or no pension is means testing. There's an assets test and an income test, and they've actually been operating for more than 100 years, both those tests, but in various forms. Quite simply, singles can have a bit over $700,000 and couples can have a bit more than $1 million in assets outside the family home and still get a smaller amount of age pension. It's not just the age pension that's important to retirees, it's also the pensioner concession card. The Retirement Income Review calculated the value of that card. They found it's actually an equivalent value. It's actually similar to the outlay spent on the age pension itself. Think about the pharmaceutical benefits, discounts on rates, transport, all sorts of discounts and benefits. That's really, really important to a lot of retirees. Even some of our more wealthy ones would still absolutely love to get a dollar of age pension so they can get access to that card. We did some analysis on our AMP super fund. We found 94% of our members would benefit from our Lifetime Super functionality by having increased that eligibility for the age pension. These are the solutions and strategies which I'm going to outline in a minute, are very widespread. This isn't niche, this is. The vast majority of our members can really benefit from these solutions and in fact, the very vast majority of Australians in general. I'm going to talk about the assets test in particular. Normal super, your assets test is simply your full balance at retirement and of course your full balance is all your contributions that you put into your super compounded by your investment earnings. That's your balance and that's your asset test on a one to one basis. However, for what we call Lifetime Super or our lifetime feature on our AMP super fund, Centrelink is going to ignore the actual balance and they're going to look at what's called the purchase amount, it's a legislated term and the purchase amount is the contributions. Any amount you actually put into your super compounded not by the actual investment earnings but compounded by the government's deeming rate. Now that's currently set at 2.25% and effectively it's your contributions rising by roughly inflation. Even better than that, there's a discount, a 40% discount. Only 60% of your purchase amount is counted as an asset under the assets test when they're determining age pension eligibility. Hopefully you can see already there's a couple of really important ways you can create a benefit for our members. Number one, anytime investment returns are better than 2.25%, heck that's most of the time, we got 12% last year. You're creating a gap between the account balance and the purchase amount and then the asset test is only 60% of that value. Here's a case study of a couple, David and Peter, age 50, with a combined balance in super of $500,000. They're still contributing from a salary of $120,000. Over a 15 year period that $500,000 is going to grow to $2 million. It looks pretty heroic, but it's only 7.8% investment returns. That's the benefit of compound earnings, plus of course the contributions that are going in, that's their balance. Like I said, Centrelink is not going to see that balance. Centrelink is going to see their purchase amount, which starts at $500,000, grows by the deeming rate, currently 2.25%, plus the extra contributions. That's the purchase amount, and then the asset test is 60% of the purchase amount. What starts off as a 40% discount over this period becomes a 70% discount. We've got $2 million, but only $600,000 of that is going to be assessed. That's part one of the story at retirement. It actually even gets better than that. Let's carry them through at age 65. Here's a summary again of their situation. They've got $2 million balance, $1 million purchase amount, and a $600,000 asset test. Now what we're seeing in real life is advisors putting all the client super into Lifetime Super. It's the smartest thing to do because there are simply no restrictions. It doesn't cost them any extra, and it doesn't restrict their capital in any way. Once they move into retirement, you don't want all of your money tied up into a lifetime income stream because it's not a come and go as you like type solution. It's a lifetime solution, and it's not designed for lump sum access, things like that. In real life, advisors are allocating on average 50% to an account-based pension and 50% to our lifetime income stream. Let's do that for this couple. We take out half, we take out $1 million and put it into an account-based pension, and the remaining million stays in lifetime. What does that do to the purchase amount? Sorry for the technicalities, but this is really, really important to advisers and their clients because it creates such a powerful impact. When we take that $1 million out and put it into an account-based pension, it reduces the purchase amount dollar for dollar back to zero. That of course reduces the asset test down to zero as well. Now we've got still a balance of $2 million, but the amount in the lifetime income stream, $1 million, is completely asset test exempt in this case. I'm sorry, because we're going back, that would give an extra age pension eligibility in today's dollars, about $27,000 a year. This is not small change. This is a substantial uplift for our clients, and it's very, very easy to achieve. It's not difficult to see why we've got a whole lot of advisers now putting all their clients into Lifetime Super to take advantage of these benefits. As I said, it doesn't cost them anything, it doesn't restrict them in any way. Lex also mentioned our guarantees. We got income that goes for life, but also people want that peace of mind. Some clients certainly want the peace of mind about the level of funding that they have. Our new and improved MyNorth Guarantees meet that need, especially in the pre-retirement phase where clients are often de-risking. Often they are concerned about sequencing risk, concerned about that critical period before retirement. Often they go from growth investments to something quite moderate. Obviously with a growth investment you're going to get maximum return, but also potentially you could have a market fall right before retirement. That really does terrify some people. They do de-risk very, very commonly. It's probably one of the most common advice strategies we see in the market, that de-risking to a moderate portfolio, but it comes at a cost of how much upside they have and it still doesn't completely guarantee that they won't have negative returns during that period of time. Our guarantees on the North Platform provide an alternative to this strategy instead. We can stay invested in growth assets, but there's a hard guarantee that there will simply not be a market fall over that period of time or if not, they'll be protected. You can retain most of the upside. There's still an impact of the fee, but if we actually look and back test on the last 15 years of median super fund returns, we can actually see it's a superior strategy to use a guarantee instead of de-risking. Here we can see the median returns for a growth portfolio, 8.6% with two negative years, less the cost of a guarantee. Our fee for a 10-year guarantee is 1.25%, gives you 7.35% net and no negatives. Compare that to a moderate portfolio where they've de-risked, median returns of 6.2%. Here's just a quick case study about how the guarantees work in real life. In this example, someone's invested in a growth portfolio. At any point in time, they have access to their entire balance and it goes up and down in value. What happens on an annual basis with our guarantees is that any higher value over the previous year is locked in. Basically, it only ratchets one way upwards, locking in any previous gains and protecting that capital. They can still exit at any time and get their investment value, or with their optional vesting feature, they can also have some of the protection during that period as well. At the end they have the entire protected amount. In this case, the market has fallen quite substantially in that last year to about $800,000, but they walk away with over a million dollars because of the benefit of that guarantee. This isn't for everybody, but it provides peace of mind and confidence to those who really want to protect perhaps some of their portfolio. Maybe they need to pay off a mortgage and they just want to make sure that that's covered no matter what. There are some really strong use cases for why you'd use a guarantee as part of the portfolio, and we're really pleased to be able to offer this as just another solution that differentiates our North Platform from others in the market. Thank you for your attention. I know there's been quite a lot of technical stuff that happened. Happy to take questions later on. Now I hand over to Edwina Maloney, who's going to give a deeper dive into North. Thanks Ben, for that hard act to follow. We forgot that one we were particularly proud of, but I'll go into it. Thank you very much. It's really great to be here talking a little bit about North today. North is one of Australia's leading investment and retirement platforms. It is designed to help advisers grow their business by helping their clients prepare for and live well in retirement. Our funds under administration has increased to $83.2 billion and now we have just over 25% in managed portfolios. We continue to see amazing growth in that managed portfolio area with North outperforming in that segment due to the strength of our offering and ongoing innovation. We have 132,000 clients and we're one of the largest pension products in the market. We see North as more than just a platform, but a vital partner in our clients' retirement journeys. That's what we see stands us apart from our competitors. Our pension account is the largest platform pension product in terms of funds under administration and we've had many accolades as you saw on the previous slide. This year we won the Best Advised Product of the Year at the 2025 ChantWest Awards, which was highlighting our commitment to excellence in our intuitive digital interface, our efficient and effective service offering enabling our advisers to grow their businesses, and our ongoing innovation in super and retirement. Let's talk a little bit about the market. The platform market is growing. It's about 10% per year for the overall platform market, getting to $770 billion, and super and pension is a subset of that market growing at about the same rate, 9% to $374 billion. We are the third largest platform in that super and pension market. However, we think this vastly understates the market opportunity for North and for our platform business. Given our focus on retirement and given our focus on that mass affluent advice segment, we see the addressable market closer to $2.4 trillion, which includes funds in retail, industry, and public super funds with client balances over $200,000. Many of these clients we know will benefit from advice as they need that to navigate our complex retirement system. You just heard about some of that complexity from Ben. Just navigating the age pension system, our competitively priced proposition, our lifetime solutions, and our broad range of customization options in our managed portfolios are examples of how we are uniquely positioned to win in this market. You heard a little bit from Alexis about the access to financial advice. We know only 10% of Australians currently receive financial advice and most of those are aged 55 or older. A significant reason for that is many mass affluent and affluent Australians don't or can't access it because of the cost. The average advice fee is now $3,960 according to Adviser Ratings. While there was an exodus of around 12,000 advisers since 2018 and that did create a significant gap in the supply of advice, those numbers have now stabilized and we're talking to a lot of practices who are now very focused on growth. Advisers are looking for efficiencies in their practices to make advice more affordable and accessible. Many practices who are averaging around 100 to 110 clients per adviser are now targeting 200 clients per adviser. Most of that growth comes from that mass affluent segment where there is mass affluent adviser segment because there's limited upside for them in increasing advice fees. Where a higher net wealth adviser, there's more price elasticity and they can increase advice fees. This we believe will help serve the 2.3 million Australians who are seeking or want financial advice to help them navigate our retirement system. We know and we heard from Alexis that most of their wealth is sitting in their home and their superannuation. We know this segment are cost conscious. Competitive pricing is very important as is having great solutions to navigate retirement and we're very well positioned to take advantage of this. Our vision is to become the easiest platform for advisers to do business with while differentiating through market leading retirement solutions. We believe we create value by powering advisers to inspire clients to prepare well and thrive in retirement. We're specifically built to help advisers thrive in that retirement advice market by empowering those advisers to deliver the best possible advice experience for their clients efficiently, profitably and at scale. We have many strong advocates within our current adviser base and they call out our main points of difference as our market leading retirement solutions, our competitive pricing, our digital first platform and our tailored managed portfolios. These are some of the unique features that North has along with, of course, fractional shares, simultaneous buying and selling, quick and easy recontributions and fast track withdrawals. In Q4 of this year, in quarter four of this year, we will have completed our simplification journey. We will have a clean front book offer and strong foundations, which positions us very well for future growth. We're built on in-house technology, and this enables us to scale quickly. It lowers our cost to serve, and it accelerates our speed to market. We're also harnessing the power of AI in our product and software development process, which will further drive efficiency, quicken and shorten our delivery time frames, and improve the quality of our offer in market. Together, this will help us differentiate and win. Back to the challenges that Alexis George outlined earlier, we help our clients accumulate wealth as they prepare for retirement through our unique lifetime solutions that you just heard a little more about from Ben Hillier. Our managed portfolios and our capital guaranteed investment options, our lifetime income solutions, and our capital guarantees support clients to thrive in retirement by enhancing retirement income and easing that fear of running out. Finally, an area we're really passionate about is expanding access to financial advice to help clients navigate the complexities of the retirement system. As I mentioned earlier, our in-house technology positions us really well for growth. We're doubling down on our digital and technology development to unlock further efficiencies in the advice process, enabling them to see more clients and expanding access to financial advice. This will also help increase switching opportunities to North. I'll take you through these opportunities in a bit more detail. Firstly, MyNorth Lifetime. Two and a half years ago, North launched the MyNorth Lifetime Solutions. They are a unique and innovative range of accounts that address those critical concerns for our clients, that fear of running out of funds in retirement. They were a response directly to the retirement income covenant, which is a key area of focus for the regulators instead of regular superannuation. As you heard from Ben Hillier, MyNorth Lifetime can enhance retirement outcomes for clients and combines the compelling features of an account-based pension with a traditional annuity to enhance retirement outcomes. We are seeing those benefits of a 60% uplift in income for our members as they hit retirement. Given these benefits, some of our advice licensees and advice practices are now implementing policies to ensure their advisers must consider a lifetime solution or a lifetime income stream such as MyNorth Lifetime when they're assessing certain client segments. We're the only platform in the market that has lifetime solutions today, with a similar solution only available on AMP Super. As of July 1, we decided to remove the small additional fee on the Lifetime Super account, not the other two accounts, as this reduces the barrier for advisors to recommend MyNorth Lifetime Super to their clients. We think that will make those products even more compelling for mass affluent and affluent clients in accumulation and pre-retirement. Our advisors love the full investment flexibility that they get on the platform because that certainly helps in improving client retention and engagement through retirement. Unlike annuities, which are set and forget strategies, the data as you can see here also shows quite a diverse client base. We have our youngest client being just 17 years old. Yes, his father was a financial planner, so he got good financial planning advice to go into the product, and the average age for our Lifetime Super members is 50 and 70 for our lifetime pension clients. Moving to MyNorth Managed Portfolios, as you would all have observed, managed portfolios continue to increase in popularity. Three in five advisors are using them because they deliver efficiency in reporting, administration, and compliance, whilst they also give advisers the flexibility to choose a solution that best meets the needs of their clients and aligns with that practice's investment philosophy. They offer clients direct ownership, transparency, professional management, cost efficiency, tax efficiency, and transferability. We are unique in terms of the range of solutions we offer, having just added the Blend Series to our range of managed portfolio solutions, so this enables practices and licensees to customize at the portfolio level. We are the sole platform in the market offering this comprehensive set of solutions, tailoring portfolio management for all preferences, which we're seeing practices, consultants, and their clients really embrace, and it's helping us be one of the fastest growing managed portfolio offers in the market. Our managed portfolios are now $21.8 billion, which is evidence of the success with advisors and their clients, and we expect that to continue. Efficiency, as I said, is also a key tenet of our vision and our value proposition. This is really important to support those advisors to move from circa 100 clients per advisor to 200. Our intuitive platform has many key features that drive efficiency. Where advisers have seen measurable time savings, they can reinvest in spending time with clients. For example, advisors and their support staff cite a 24 hour a week saving on average from using our managed accounts. Our market-first AI file note is saving up to 30 minutes per client review, and our interactive reporting provides seamless visual access to client accounts and performance data, saving time and improving client engagement with interactive snapshots and custom reports. Our RE contribution wizard streamlines what used to be a multi-step manual process, enabling advisors to implement a common investment strategy using a single workflow with no time out of market and certainly drove significant benefits for us in the recent financial year-end process. We're improving our service efficiency via activity management and straight-through processing, which enables advisers to more efficiently serve their clients. It also means there's less follow ups to our North Service Centre, which is reducing our cost to serve. We'll continue to invest in advisor efficiency, working with our advisers to understand their needs and ensure we support them to maximize their time with clients. When advisers see more clients, more clients get access to North. I'd just like to share a quick video on how the North Interactive tool works in a client review. Uh oh. Welcome to North Interactive. A smarter way to save time on client reviews, enhance engagement, and showcase the impact of your advice. Here's how North Interactive can help you build long-term client relationships that leave a lasting impression. Tailor your client's financial story and visually demonstrate the impact of your advice by creating reports where you can produce personalized content, reorder the flow of information, and easily add your own branding so you can present it or even download it as a report. Enhance client engagement and understanding with live presentations where you can showcase value over time, investment performance, and asset allocations with engaging charts. Create a comprehensive overview of family wealth and consolidate information across multiple clients and accounts, all in just a few easy clicks. Work smarter, not harder, with our new AI File Note feature, which records meeting transcripts in real time when creating your compliance records so you're free to focus on your clients. The tool's interface allows clients to grasp complex financial information at a glance, making review sessions more interactive. North Platform Interactive. A better way for client reviews. Moving to Adviser Growth, what's underpinning those great cash flow results we talked to the market about today? We've made a significant investment in our platform and our proposition over the last couple of years, and that's driven growth in our productive advisers who are strong advocates for North. The number of advisers on North with greater than $1 million in funds under advice has grown by 25 advisers in the last six months to 2,213 advisers. What's even more important is we're seeing a really strong pipeline of new advisers using North for the first time, evidenced by those opening more than three accounts. Eighty have opened more than three accounts in the last six months, with a further 80 opening their first or second accounts. In addition to this, we continue to see an increase in the number of advisers with positive cash flow and a decline in the number of advisers with negative cash flow, supporting our long-term cash flow growth potential. We see the future growth with existing advisers coming from two key areas. First, increasing the share of wallet as we move them from secondary to primary user and supporting our primary users with efficiency gains so they can see more clients and therefore expand their client base and bring more money to North. By deepening our relationship with existing clients, we actually have an opportunity to take a larger share of the estimated $200 billion in funds under advice that they manage. That's based on an average of $89 million per adviser. In the latest Adviser Insights program prepared by NMG Consulting, it noted that North lead users, defined by the platform where an adviser intended to place most of their new clients, place 86% of clients with North, which is well above the industry average of 81%. In that same study, 70% of all North advisers reported no intention of switching their existing clients to a new platform. This was the highest of all platforms in the study, with the others averaging 57%. An additional 17% of North advisers would only switch less than 10% of their clients, depending on their circumstances. Finally, we're also looking to unlock future growth via the 8,000 advisers who do not use North today, but many of whom have mass affluent clients who would benefit from North. We've focused on fostering relationships with new users, which has become crucial. We have signed 35 new distribution agreements this year so far, and we're seeing a number of advisers who try North for the first time and continue to partner with us and take us on as their primary platform. In the last three years, of the advisers who have opened three or more accounts, 39% opened their third account within a week, and 77% were opening three accounts within three months of opening their first account. Finally, our cash flow growth. In the first half of 2025, we saw net cash flows excluding pension payments increase by 99% versus the first half of 2024, up from $1.16 billion to $2.3 billion. This is a result of our sustained effort to improve cash flows within the Acumen Network, previously known as AMP Financial Planning, Charter, and Hillross. With the broader advisor population, our strong partnership with Acumen continues to result in strong net cash flows, which were over $1.5 billion this year so far. In addition, our work in attracting new advisors from outside of that network in the last two years now continues to pay off with a turnaround and acceleration in cash flows from that cohort of advisers. We look forward to continuing to partner with all of our advisors to help them run profitable and growing practices, which will ultimately help more customers prepare for and thrive in retirement. I'll be happy to take any questions, but I might hand over to Melinda now and we'll come back to questions at the end. Thanks Edwina. That's an amazing business. That platform's business. I think it's fair to say that Edwina is Alexis's favorite child. However, I've been brought in here to get this business growing, so what I'm going to show you is how I'm working my way into Alexis's affections and my goal is to be her favorite child and be even better than the platforms business. There are three things I'm going to be talking to you about today. The first one is how we now have a really strong customer value proposition in AMP Super. The second is that we've stabilized cash flows and shut the back door and you've seen some of those results today. The third is that we're now really positioned with strong differentiation to grow the hell out of this thing and we've got some good early indications that we are going to be able to do that. I'm very excited. You can see here the scale of the current business. It has been growing over the last two years, 2024 and so far in 2025 after many years of decline previously. I think it's fair to say we've been the problem child. The fund does have more choice than MySuper members and it's got also a significant footprint across employer arrangements or corporate super as well. We continue to be well rated by research houses and we also won a recent Chant West Award for innovation, which was very exciting. We're recognized as a high quality offering. Only this one actually, I think it was the tail end of last week, we've seen some CoreData research on the Best Possible Retirement 2025 Industry Report and that measures how funds in Australia are comparing for pre-retirees and retirees in their service proposition. AMP Super is in the top three funds in the country scored by pre-retirees and retirees. We're the highest ranked retail fund. There's a mid-sized industry fund as number one and the Commonwealth Super Scheme as number two. Interestingly, across that survey, retail funds did outperform industry funds by a considerable margin in terms of how we're doing in retirement servicing. We think there are three aspects of market dynamics at the moment that are really providing some opportunities for AMP Super and the first one, Lex has already covered, the retirement income gap with 2.6 million Australians or 62% of people aged over 67 are getting access to the age pension at the moment. Now let's put up the number before that. 80% of people can't reach a comfortable standard of living in retirement. Tragically, 60% of people can't even reach a modest standard of living in retirement at the moment, despite many of them having significant wealth in their homes. It's really hard for them to turn that into retirement income. As we face into the baby boomers continuing to retire, our solutions really need to change to deal with that problem and help our members and Australians more generally have a retirement that matches their expectations. This has regulatory support and government support through the retirement income covenant. I think we've heard some really strong statements by regulators that they're not happy with how quickly super funds are actually changing their arrangements to provide better retirement solutions. Frankly, many funds aren't equipped for the scale of changes needed to do that. Secondly, member servicing fees across the industry have converged, and the last point of battlefield now is the servicing that's being provided for those administration fees. We've seen some examples of really high-profile service failures recently. A couple of funds are being sued by ASIC, and another fund had a seven-week outage due to a systems transition which hit the front pages of the news. Technology and digital capabilities are really critical for providing those excellent member experiences. I'll show you in a moment. We've had a really high take-up of our digital advice service. I think it's now up to nearly 8,000 journeys through that since we launched, which is very exciting. There's a real unmet need, as we've been talking about, for advice and guidance, and this is one of the ways we're helping meet that need. Last but not least, cyber investment. We're not just starting this in investment. Cyber is core for AMP. We have a bank as part of the AMP Group, and we're governed by bank-level security, and we extend that same level of security over to super members as well. We've been doing a lot of work for the last few years, and certainly in the 18 months since I've been here at AMP, on our value proposition for AMP Super members. The main challenge this product or this offering's had has been retention of customers. What we've been doing is focusing on improving that core value proposition, and we're now in a really strong position, and we have been turning the dial to stem those outflows. First of all, in terms of our core offer, Anna Shelley and the team, our Chief Investment Officer, reset with the trustee the investment strategy three years ago and that's now producing market leading returns. We've got the advantage of in-house investment capability and we've also simplified a lot of our back office and investment structures to provide efficiencies. Our returns to 30 June, we're really pleased with our MySuper returns, which you can see up there. It's the second year running of having those as being market leading in the top few returns across the industry. At the same time, many of our competitors' returns have come off the boil somewhat, some of them this year significantly below the median, which we think is going to be around 10.5%. It's not fully analyzed yet. As I've already mentioned, fees have converged. Our fees are really competitive. We've got significant discounts there for large corporates, but certainly we think fees are appropriate to both compete and to also maintain and support our growth. Where do we think our value adds are? Our insurance is particularly important in the corporate super market. We've got a really flexible and strong offering there with TAL, strong terms and conditions, low cost, modern digital solutions for our customers to engage with us. We did deliver a 2016 7% premium reduction last year, so we feel we're in a good position there. We've got some key differentiators. We've got the unique lifetime proposition, which I'll talk more about in a moment. As Edwina mentioned, no other fund in the industry except for North and AMP Super have this offer, and we think it's going to be quite some time before any other corporate or MySuper style of offering has a Lifetime Super solution. If anyone who's a corporate or an individual member wants that, they can give me a call and I'll be happy to talk to them. We've got a digital advice journey which really supports that offering and a range of other services for members, and I'll talk a bit more about that in a moment. We've got dedicated in-house contact centers and administration, so we've got a high degree of control of that front-end customer experience and we've got very strong customer satisfaction scores. We've got a comprehensive digital app and portal and a range of new services on that, including the digital advice, wellbeing services, and digital insurance. Very excitingly, we are about to launch AMP Rewards and that's an offering via Citro, as Alexis George mentioned. What that means is anyone can bring their own card, they don't have to open a new account or open a new card, they don't have to register for things, they just link their card to Citro and then as they spend on going about their normal business, as they're spending with the partners in the program, they can choose to have credits into their bank account or add it into their superannuation account. We're really excited about that. We think it'll really help us with loyalty and retention. What have we been doing over the last number of years? AMP has simplified its multiple legacy products in this space and we've got a single very simple go-forward offering. That behind the scenes has led to a much simpler operating model, creating efficiencies. We're now focused on how to drive even more efficiency and that's right through the value chain. That's focused on both cost efficiencies, but also how we can provide better services to our members. We have the advantage, as I mentioned, of in-house administration and servicing. We do have that high control of the member experience. We're not resting on our laurels there. We're making significant investments as we speak to optimize, assess, and then optimize all the component parts of that existing technology stack that's delivering that value chain. We're looking at where we can optimize each of those elements. As part of that, where it makes sense to partner for some of those services, such as where there's no competitive advantage in us providing it ourselves, we will be doing that. Our aim is to really retain a high degree of control over that front-facing customer experience. We're also working to drive service efficiencies through deeper, straight-through processing. As part of that, because we've got an in-house AI hub and significant AI capability, we're really looking at where that can assist us in our deep automation. All of that's going to let us continue to uplift and improve member outcomes through enhanced offerings and we're going to be able to further uplift our digital servicing. We think we're up there towards the top of the industry right now, but we're not. We're going to continue to improve that. AMP Super right now is more flexible and more nimble than we've ever been in our history. We are working to even further improve our speed to market. What this is going to let us do is deliver services and offerings where members and potential members are actually engaging with their superannuation now online. This program of work, while it's focused on value chain efficiency, is putting down the foundations for an even deeper D2C capability at AMP Super. I'm really excited about that. It is important to look at our workplace partnerships or corporate super. It's a key part of our heritage and still a really important customer for AMP Super. We've got deep experience in this area, we've been in it for decades. Over that time, we've built a really flexible offering that can cater for different needs of larger and smaller employers. As I mentioned, strong insurance is a requirement in this part of the market, but we've also got a high degree of flexibility. Depending on the size and scale of the employer, we can go all the way up to almost a white label arrangement where their brand is on the fund versus our brand. We have been looking to strengthen our overall value proposition for our members, but we've also at the same time been looking to do that for our employer clients. Our key differentiators here are our Quartile 1 investment performance, the new Lifetime Super offering, which they can't get anywhere else. Those two things together give us real proof points now to have a conversation with an employer as to why they should stay with us or why they should be joining us. Corporate super new members have grown 17% year on year and our corporate super book is in positive net cash flow. We are now looking to add to this momentum. We are targeting business growth. We've partnered with a couple of different payroll partnerships to help us with both acquisition of new members and retention. We started this in August 2023. It's been in pilot mode and we've been gradually rolling out and piloting initiatives. We started with Employment Hero in a default super journey in August last year. We added Flare default advertising in October last year. In November last year, we added advertising to existing AMP Super members with Employment Hero and we are now just about to implement the same with Flare. We have been piloting and as we find that things work and we've made sure they're working well, we are then adding more spend into those areas. We're quite excited about the opportunities for that going forward. You've seen Alexis George and Edwina Maloney talk about this slide. This is how AMP Super maps across those different opportunities with Lifetime Super for the accumulation stage, Lifetime Pension which is coming in the first half of next year, and then Intra Fund Advice is really how we are going to be helping customers understand those offerings. Bearing in mind most members in AMP Super are below the asset level where most advisors can cost effectively service them given their compliance requirements. I'm going to talk a bit about Lifetime Super and then Intrafund Advice which is a key supporter of that offering. We've just released this in May, the Lifetime Super for the mass market. As I like to think about it for the AMP Super Fund, as I mentioned, it won the award. It won us the award. AMP Super won Best Fund Innovation at the recent ChantWest Awards. What makes this offer innovative is it's been rolled out to 140,000 members on day one when it commenced in May. This is why I'm now further up the favorite child stakes. Edwina's got 2,000 customers in Lifetime Super. 140,000, just saying. No other super fund in the market except the platform, as I mentioned, the North Platform, has this offering. If employers or members want it, they have to come here to get it. There are no fees for members who switch it on and it doesn't change anything about their account. It actually works in the background, doesn't change their investments, doesn't change anything. It just gives them the opportunity to get those benefits that Ben Hillier described later on should they choose to put some of their money in the Lifetime Pension. The pension version is on track for release in quarter two of next year and it's a simpler version of the North offering. It has the assurance of money back options and it also has an aged care bonus. Ben's already explained how the offering works to create that concessional balance. The important thing to note here and why we're so excited about this as a retention tool for our current customer base is that that concessional balance cannot be taken with you if you roll over to another super fund. If a member has built up this concessional balance in AMP Super, so they're one of the 140,000 we've switched it on for, or they elect the Lifetime Super feature, they need to stay in AMP Super to be able to retain the value of that. We do think it's going to help us quite dramatically on that retention side. When someone gets to retirement, the power of this offering is the combination of the account-based pension, the allocated pension, and the lifetime pension. The digital advice tool, which I'll talk about in a moment, is the way that we are going to be able to tailor a recommendation to a customer as to what proportion of their money at retirement they should have in the allocated pension and what proportion they should have in the lifetime pension, depending on their circumstances. That is how we're actually taking what, if you look under the hood, as Ben described, can be quite a complex offering and making it really simple for the member. Here's what it'll do for you. If you give us all your information, we will tell you what to do. Before I talk about this digital advice offering, it's important to step back and clarify what is intrafund advice. Intrafund advice is advice that is included in the cost of the fund, it's not charged separately, and it's usually about the super fund only or its related retirement offerings. Here at AMP Super, we've had a salaried advisor team for a number of years. They're fully qualified advisers and they give phone-based advice only to members and only about their AMP Super fund or the account-based pension or, when it's available, the lifetime pension offer. We're not providing comprehensive advice. If a member has more complex needs or they want comprehensive advice, we refer them to a panel of IFAs. What problem are we trying to solve with this service? We've been talking about that problem a lot today. CoreData research indicates retirement income is the top concern for Australians, but planning support's lacking. Only a third of pre-retirees feel connected to their financial future and only 41% understand how to reach their retirement goals. AMP Super offers and has offered for a number of years a retirement health check that takes care of this and helps solve that problem. The chart on the right there, the black bars show you that in 2024, when this retirement health check could only be done through our phone-based team, our team did 1,688 pieces of advice in total and some of those were retirement health checks. In 2024 we only had phone-based advisors. The number of phone-based pieces of advice we've given in total has been about the same first half, 2024 to 2025, a slight increase. Since we released digital advice on 31 January this year, you can see the bright blue line here. The only digital advice journey we've had available has been the retirement health check for most of that time, and we've done nearly 8,000 pieces of advice. So 8,000 retirement health checks have been delivered in just that five months since release. That's more than 12 times the number we did in the whole calendar year last year. That's just evidence of the scale, reach, and appetite for smart and accessible financial guidance. We've just rolled out some more digital advice journeys in the last couple of weeks, and we've got more coming in October. Watch this space. I'm going to show you a video featuring Andrea Boss, our Head of Advice, who will talk a bit more about this offering. At AMP Super, we're committed to helping our members retire with more, more confidence, and more super savings. Earlier this year, we launched our new digital advice service. It's available 24/7 and at no extra fees. Digital advice can show you how to retire with more money. Since the launch, our progress hasn't stopped. We're excited to launch three new personal advice journeys introducing Lifetime Super. This is a cutting-edge feature available exclusively to AMP Super. It could increase your eligibility for age pension entitlements, and the longer you have it, the more you could benefit. Our digital advice includes a personalized Lifetime Super projection showing the potential financial benefits for you. Not sure if you should be contributing extra into super? There's no need to guess. Our new contributions advice journey can show you the right type and amount of contributions to make into your super so that you can retire with more money. Not sure if you're in the right investment option? Our investment advice journey will recommend the right investment option for you to meet your goals. Are you on track for retirement? How much will you likely have saved at retirement? Our retirement health check journey provides a personalized projection and retirement score. Discover when you can access your super and your estimated age pension entitlements. At the end of the journey, you'll receive a personalized statement of advice. From there, you can implement the changes, adjust your contributions, switch your investment options, or activate your Lifetime Super right away. Prefer to talk it through. Our digital advice service is backed by our friendly team of phone-based advisors, and at no extra fees you can book to speak to one of our financial advisors to figure out the next best steps. We're not stopping here. More advice journeys are on the way, including insurance, accessing your super whilst you're still working, and what to do with your super when you retire. AMP is here to help you retire with more confidence and more money in super. Lots of different super funds have a digital advice offering. I think there's some key things that differentiate this one. The first is that it's integrated digital and human advice at no additional cost. The second is the advanced personalization so members can select their desired retirement income. It's not just pre-populated and it includes age pension, and there are significant ways they can tailor what they're trying to achieve. It's full personal advice, it's got strong compliance guardrails around it, and if a member is identified as having more complex needs, they are sent out to speak to the phone-based advisors. Lastly, it gives practical action plans so it actually tells them what to do next and makes it really easy to implement the advice. We believe this will lead to stronger retention, higher net cash flows, and earlier retirement engagement. Now, speaking of higher cash flows, I've covered our stronger customer value proposition. I've shown you how we're going for growth with new market-leading offers. Last but not least, I'm really pleased with the momentum that we've got on our cash flows at the moment, even before some of those new initiatives start to take effect. We've stabilized the cash flow position. We actually had positive cash flows in quarter 2 for the first time since 2017, and we continue to work towards getting the fund into a sustainable positive cash flow position. You can see from this chart that the trend's heading in the right direction there. The factors that have led to this are improved retention through that stronger CVP I've been talking about, including those payroll partnerships as well. We've seen reduced switching to competitors. We've got very strong peer relative investment returns the last two years, which have sent us into quartile one across multiple time periods. We've got a deep investment in digital services, which we're continuing to support. We've got strong in-house control of the front-facing customer experience, and our customers who deal with us rate us very highly on service. Last but not least, overall, AMP's improved reputation has now also led to improved sentiment in the employer part of the market. We've only just started on this growth journey, but we're incredibly excited about the opportunities in front of us. I think there's still quite a bit of low-hanging fruit in terms of things that we can continue to do. We wait with great interest to see how these new offerings help us improve that momentum. Thanks very much and I'll hand back to Alexis now. Thank you very much and thank you to the team for doing an excellent job of representing us. I think when you look at where we're at today, the rewards don't come quickly in this business. We've been working really hard for a number of years to improve our service, to improve our returns, to improve our reputation and to be able to stand up here today and put a set of cash flow numbers in front of you where you can see the quarter on quarter on quarter improvement that we've committed to for the market for ages and to actually be able to say, albeit June's an unusual month, to say that our S&I business delivered positive flows for the first time since 2017 in the second quarter is an amazing feat and I know we're all very committed to continuing that trajectory. If I look at where we are at AMP today, I think we're in genuinely the best position to be able to help people with their retirement. We have repositioned the business, we have got a stable and experienced executive team, we've reduced complexity and we're creating value. We have a point of difference. I know many talk about retirement, but we're out there actually delivering the solutions today. We have a brand now that is well recognized in the community and it's synonymous with the super and retirement space. We're in a part of the market where there are tailwinds and we think we're uniquely positioned to take the real progress in this opportunity. I think we're a different company today. We're a company that's adopting a different approach to growth going forward and we seriously look forward to sharing that journey with you. On that note, Richard, you're the boss. I'll get the team up on the stage. Thanks very much, Lex. While the team's coming up, just a reminder we'll take questions from the room. For those online, you're able to put your questions into the webinar, so please feel free to do so. Those in the room, please just wait for the microphone and before you ask your questions, state your name and affiliation. If you could potentially just limit yourself to two questions to start with, then we'll go around. Firstly, are there any questions in the room? Hello, good afternoon. Lafetani from MST. My first question is to Edwina. I'd like to get a better understanding about the managed accounts blended portfolio. You said you've got something differentiated in the market. It's resonating. You've got three options. Can you unpack that a little bit? Also, can you give us an idea of where net flows are coming from that you're winning? Is it coming from other sort of retail platforms or is it coming from industry funds? Do you have an idea on what's winning? To the first question, where managed portfolios have been traditionally and where most platforms are playing is there's sort of two bookends. A practice is either buying an off-the-shelf managed portfolio solution, which many will do, particularly when they don't have particularly large FUM or that tailoring. That's where most of our competitors are offering and indeed where our offer was sitting, off-the-shelf or fully tailored. Fully tailored, for it to be economical for us to deliver, you really need—the adviser needs a balance of kind of circa upwards of $250 million to make that economical. What we've done here is we've enabled advisers to take a portfolio that might be sitting on a menu and customize it for their group. It enables a degree of tailoring which really benefits. Many of them would say, I can't use the buy menu because I'm bringing a client across, they've got portfolio holdings already, capital gains tax implications means on bid basis I can't bring them across. It enables them to tailor through exclusions or inclusions that portfolio based on their clients' needs. That is quite unique. The way we've delivered it through technology means, again, some were sort of doing that but they were having to build multiple managed portfolios. We've enabled it through our technology to enable that to be delivered really in a streamlined way. That's absolutely filling that sweet spot between kind of $50 million and $250 million advice, where they had to use an off-the-shelf menu. Now they can use these tailored. We think that's a real opportunity and we started delivering that through that Lonsec and BlackRock alliance we had with Acumen, but we've now rolled that functionality out. I think that's the opportunity there. Back to where our flows are coming from, really broadly all over as I said, and the chart demonstrated. What's been really pleasing is the Acumen. We continue to see strong growth out of our Acumen network. They are in that sweet spot. Matt Lawler and Neil will talk about taking—their strategy is taking clients from—they are the example of 110 to 200 clients. They are very focused on that. They've topped out in terms of the advice fees they can charge. They repriced advice fees a couple of years ago. They're very focused now on organic client growth and we're starting to see that coming through because we have such strong advocacy in that group. We're going to benefit from them becoming more efficient. We're certainly seeing growth there and then more broadly across the industry. It is a broad array of practices, many who are now, we've gone into RFIs where we're winning up against, I won't name them, but many of our competitors, directly winning secondary or primary platform spots, and then the money is starting to flow in. They're not bulk transitions, but the money will come across, starting to move across, and we're certainly seeing industry funds. As I said, the proposition here and I think the real opportunity is as people go and seek advice, we know, and there was a Connexus report recently, that most of the switching now, natural switching, is coming to retail platforms from industry funds. Industry funds' natural flow into industry funds switching, by that I mean not contributions, only three industry funds are a net inflow, three out of the whole market. We're certainly benefiting from that flow out of industry funds. May I push it with a question? Push it. A question for Melinda, and first of all, even though Edwina may be the golden child, I can assure you you are not the problem child in AMP. Can I get data for a better understanding? Can you sort of unpack? Whereas North is primarily through advisors, you've got a very different distribution model. You're going through payroll, you're going through corporate. You mentioned direct to consumer, you would also have advisors. Can you give us a better understanding on how those channels look at the moment? There's a real competitive advantage now with the lifetime offering. Where will you be focusing on where you can get best bang for buck in the next six months to a year? Great question. Probably. If you look at the size of our current, where we're growing, Corporate Super is still the largest. I think we've got what we're working on at the moment, which is how do we deepen our relationship with the corporates who already have AMP Super as their default super fund? As you'll find with most workplaces now, members have individual choice, so they're not all with the Corporate Super Fund. The combination of the returns we've got and the Lifetime Super offer has got employers quite interested in publicizing that offer again with their employees to see whether more people want to join the fund. I think we've got considerable opportunities for growth there. We're also participating in a range of RFI processes around the market. Research houses are very positive on our offering at the moment and those ones that are running tenders. Corporate Super is still important. The second area of focus is the D2C market. As I outlined, a big investment in both servicing our current members better and making sure we've got all of their super is a big opportunity. Then how do we start to attract more new members? We've been quite successful for a pretty low spend on attracting more direct customers and we're certainly amping that up at the moment. Last but certainly not least, we've got a big heritage group of customers on our books that have advisers or had advisers. Advisers now are writing their large customers onto platforms because it's more administratively efficient for them. We want to be the place that they send those smaller clients or the children of those clients versus to an industry fund. I think we've got a very good value proposition for that as well. Thank you. All right, while we're looking for the next question in the room, I'll just take one from online. This is from Sid at J.P. Morgan. Alexis, in the June quarter, sharp improvement in flows, was it influenced by any seasonal factors or should we expect the net flow trajectory to continue to improve from here? Can you talk about expected revenue margin trends as well? Let me talk about the flows first. Firstly, I think we have to acknowledge that June is an unusual month in Australia given the fact that it's the financial year end. There are contributions. We have talked to the market for a number of quarters now about the fact that we want to see quarterly improvement on flows. That remains the ongoing commitment. We want to improve our flows quarter on quarter on quarter. I think all of us are absolutely committed to doing that. That's the trajectory we expect to go forward. I'm not going to sit here and say it should be X or it should be Y because I think at this point in time our total funds under administration is probably more important than our flows. I'd like to get to the point where our flows are just as important as our funds under administration, but certainly that's not the case today. We want to see quarter on quarter improvement. When we come to margins, I think you'd all appreciate we've got our financial results in a couple of weeks' time, but you can see the trends in terms of the cash flows. There's not significant change in the trends from what there was at the year end. We've seen a continued growth in managed portfolios and that was to be expected. We forecast that at the end of year results. I don't see any particular change in the mix of trends there, but we'll certainly have the opportunity to discuss that in more depth in a couple of weeks. Thank you. In the room. Hi, it's Nigel Pittaway from Citi. You said that you know, you don't get quick returns. Rewards do not come quickly in this space. Obviously you've had this MyNorth Lifetime product for two and a half years. I mean the flows have stopped picking up, but there's still a little bit of a trickle. What do you think it takes to bring stronger flows into that product? I mean, is it complexity with advisors? Is it the fact that people need to focus, advisors need to be persuaded more to focus more on post-retirement? What's going to make this thing really kick, do you think? Yeah, let me make a few comments and I'll get Edwina to follow that up. I firstly think it's important to understand why we launched the Lifetime Solutions. Clearly they're a great solution for customers. I mean, it's pretty hard to argue that you've all seen the dynamics of that today. At the time we launched that two and a half years ago, I want to remind you where we were at AMP. We'd been through some difficult times. There was no reason for people to open the door to us. There had been a number of platforms that continued to improve their service proposition at a time when we were really introspective. I think it was really important for us to come out with something that was innovative and kind of got that attention to allow us to get the foot in the door because we just were not going to get a foot in the door. That's why you see the improvement in cash flows, because we have got the foot in the door. I think retirement solutions was the main reason for that. I just think it's important to remember that because sometimes we just look at the flows into the Lifetime Solutions and I think it's a far bigger story than that in terms of what I would see as the learnings from the experience, and I know Ben and Edwina both have had learnings as well. It is complex. Right. If you're an advisor and you're short on time, you want to improve the amount of time you spend with customers. It's complex, and I don't think originally we probably spent enough time working on the tools and the automation of the tools to make it easy for advisers to use. I think that's a learning we've had, and as a result of that you can start to see the flows spin up a bit more. Edwina, did you want to say anything else? Yeah, I'd second that. Certainly, the real benefit here has been getting access to advisors we wouldn't have been able to speak to. I think that's absolutely showing through in the numbers. The other thing I'd add is it is a new category, and if you actually cast your mind back in time, account-based pensions, Ben, you probably have these stats better than I do, but when they started, they were nascent, like there was no flow. They trickled in. Now an account-based pension is used in every single advisor portfolio, but it took a while for advisors to get their head around it. I would say these are exactly that. It is a brand new category of product or account structure. It's never been delivered in this format. You'd only been able to access an annuity before. Advisors hated annuities. They liked it for a small component, but it was a black box, and it didn't enable them to continue having an advice relationship with the client. There has been some confusion from advisors about where this sits in an advice portfolio and an advice strategy. There's been some reluctance to probably that interest. They come and listen to the seminars, and then they kind of sit on the sidelines. That is absolutely shifting. There will be more competition in this market. We know of others coming to market. We welcome that because I think the more in the market talking about the category, the more momentum we're going to see. Ben, anything. Ben's talking to these advisors every day. Anything else you've seen similar to account-based pensions? We're also on a similar trajectory to our managed portfolios when they were introduced. It starts small and then it's now raw. Edwina's right. For the last couple of years we've got the early adopters and I think you saw on Edwina's chart, we've got some advisors with more than 100, more than 150, more than 170 of their clients using Lifetime, and then there's a bunch who are just still waiting to see what everybody else does, to be frank. Now we also have, we've sort of done a bottom-up early adopters. Now we've got some top-downs, we've got some large groups who are mandating their advisors must consider a lifetime income solution. When you've got a client, pretty much a very large wide set of playing field to consider. We're starting to see that be implemented and advised policies sort of top-down. We think that'll also further change the trajectory. Is that particular element going to be significant? I mean, are you going to see sort of widespread adoption of that, do you think? Is that something that's sort of going to move flows near term, or because you're not the only people talking about that, there is sort of some skepticism, obviously. We're not the only one talking about it. We're doing it. We're doing. Like both Alexis and Edwina said, we specifically made a choice when we launched MyNorth Lifetime that we weren't producing a product and it wasn't intended to be, okay, we're going to make a lot of money off this product and that's all we're going to focus on. We were making North the best platform for people to prepare for and enter retirement with confidence. There are solutions that are embedded in the platform. When we're selling our solutions, we're actually just—sorry, we're selling Lifetime, we're selling North as a platform, and I think 75% of our Lifetime clients are new to North. The majority of the advisors who are using it are not acumen, they are previously IFAs and everyone's own IFA. It is absolutely being successful in expanding our range of advisors who are using the platform, and it's not just for their Lifetime clients, but more and more for all their clients. What you're trying to say is of course the Lifetime Solutions in their own right are important, right? I think it helps with a sticky client that's there for a lifetime. I think it is more part of the grander proposition. To your point, others are talking about it, but I think we've done it. We're working on the next thing now, which we're not going to talk about today, but we're working on the next lot of innovations and I think that does give us the first to market advantage. If others come, I think it would be great to have a few others in that space talking about the category because a lone voice is not easy. To add to your question, Nigel, I think absolutely, as more licensees actually go, the benefits there do absolutely require a bid assessment and possibly if ASIC come in and also say. For those novices, best interest duties. Best interest duties, sorry, if ASIC also come in and say you've got to consider it as part of best interest, that will absolutely create a groundswell. We are talking to some licensees and advice groups. We've got one large advice group who's now mandating that. There's another group more softly mandating that, and I think that will shift. On the best interest front, just looking at my book of clients, which is pretty similar to the broad Australian population, we got KPMG to run their ruler over our book to say how many people would benefit from Lifetime if at retirement they put 50% of their money in an account-based pension and 50% in Lifetime, 94% of members were better off. That just shows you the power. That is a different customer base to the North, but it just goes to show that the breadth of this is quite amazing. Thank you. Andre. Thank you. Andre Satnik from Morgan Stanley. Can I ask a slightly different question, just around your business development managers? Have you invested in having more BDMs? Have you changed, you know, maybe reconsidered their priorities in light of, you know, the new products you have and also just in terms of, you know, best practice that's out there. Yeah. Let me start and then I'll pass to Edwina. I think we've been fairly vocal about the fact that we probably, as we were introspective. Thank you, Ben. Put it through the hole. As we were introspective, we didn't spend enough time on selling. I think at the end of the day we've over the last couple of years spent a lot of time in improving our sales practices, in improving the capability of our BDMs. In fact, we've made a few changes there. You would have seen a recent appointment just even. Yes, today, yesterday. We're continuing to build on that because the lives of BDMs have changed markedly. Right. It's not just about selling now. You have to be an expert in the offerings we're making. I think we've really spent a lot of time, money, and effort uplifting the capability and the tools that those people have available. Yes. Absolutely, we've absolutely invested in this over the last couple of years. We created a new function called a new business manager. Think about that as a hunter. We didn't have hunters. We had relationship managers who were nurturing and booking of existing advisors. We didn't have anyone hunting, so we introduced that role. I think it was about two and a half years ago, two years ago. Now the cash flows, I'm at pains to say, you all know this is a reasonably long cycle. The cash flows we're seeing today are a result of that work that team was doing 18 months ago. We've continued to add to that team, so we've continued to recruit into that team. That is a key area of focus for growth. I keep saying this is an exponential growth story and some of our competitors are reaping the back end of that. We're at the start, we're just in market in the last two years hunting, truly hunting for new clients. As those new clients come in, they bring in new cash flow, new advisors, I mean they bring in new cash flow and that builds year on year. That's absolutely something we're continuing to invest in, that transformation of our sales team and sales capability. Until two or three years ago, we didn't have a fit-for-purpose CRM. We put a new CRM in that the team are now using. All of those foundational things have been a big focus for us, transforming and turning the sales capability around. For my second question, can I go back a little bit to Sid's question? Just maybe in terms of the margins, can you talk about the relative margin levels of your overall current blended books and then with these new. Products we're talking about like Lifetime Super and. Growth in managed portfolios, how do they compare in a relative sense to your overall blended books at the moment? I think if you look at the margins, and we can talk to what the margins were at the end of the year because I don't want to go into margins given we've got the results in a couple of weeks. Weeks. I think we're in a unit and Melinda and Edwina can talk about that. I just want to come back to a few things around margin, if I may. Firstly, the trends that we've put into the market today in terms of the cash flow are pretty consistent with what we saw through 2024. I don't look at the cash flow trends and go, wow, there's something different there. We all knew managed accounts would continue to grow and we forecast that. I don't see any changes in the trends. The second thing I think it's important to highlight when it comes to AMP is that we're one of the few that has in-house investment capability as well as the administration capability, and that always gives us options in terms of looking for improvements in margin. I mean that is a benefit that we have. While some of the admin fees in the market have declined, we've been able to hold a lot of those margins because of that. You saw that in the 2024 result when we started to show you the difference in those fees. In terms of where the margins were at the end of 2024, I know them but I'm happy for you to talk to them. I wasn't going to go there, but I was going to talk more about the component of margin in our North business. I think Alexis is right. Investment margin is a key component. We're looking for opportunities to embed more investment product in our managed portfolio ranges. As you said, we do make an RFE as well as the admin fee, and we are looking for opportunities to have more sleeves of that invest manufacturing capability. We absolutely, in terms of the lifetime range, that's an extra 10 bps once someone moves into income and divert income. We don't have a big population in that now. It's really small, but over time that 10 bps of margin will help. We heard today from Ben about the North Guarantee range. Yes, it's small, it's $1 billion, but it is growing, which is new for us. We haven't been in growth territory for a little while because we haven't been in market selling that. That is a much more substantial margin. We are absolutely looking for opportunities and levers across the value chain, and we have more levers than many to pull in terms of margin capture. Take a question online. There's a couple of more technical ones for you, Ben. Perhaps how expensive in terms of drag on returns is the longevity risk pool component of that pie chart that you popped up? The great thing is it doesn't have a drag really. I talked about the three components that we're managing, three risks. We're managing the investment risk, which is managed completely by market linking incomes, so zero drag, literally zero drag. The main part of longevity risk is just overcome by pooling. The only cost is members pay a premium to the insurer when they pass away. Our relationship with the insurer is they get paid when members exit the pool when they die. While they're alive, they're just enjoying the confidence and they actually have really quite high rates of income. There's no discernible, no extra cost other than the 10 bps that Edwina talked about besides our standard administration fee. That provides really high rates of income without a drag. I think you possibly just answered the second question, which was Lifetime Super. What happens when the client dies? Who keeps the money? I didn't answer that question. Lifetime Super. Really important. There's simply no cost, no restrictions, no lock-in on both North and the AMP Super fund. That feature costs nothing. It restricts no investment choice, it doesn't impact returns, just simply creates better outcomes with no downside whatsoever. If they pass away, their beneficiaries get their whole balance or indeed they can roll out to another fund or whatever. Why would they? I've just got one follow-up question on the retention piece, and you mentioned that if people move, the benefit's gone. How are you going to educate the market? Particularly on both sides within the business, so that people are aware of that change, because I would imagine most people wouldn't be over time. Thanks. I'll talk to my business and then the platforms business and then I'll pass to Melinda. In platforms, they're advised and we have been contemplating doing something along the lines that our S&I business has been done to roll this out more broadly. We're careful about that, and for exactly that reason, I think you need to make sure advisors really understand first before you endow someone with that benefit, really understand how to use it. We're spending a lot of time with advisors educating them on that benefit that incubulates they buy in out. In the platforms business, they're opting into that so they understand about before they go in. Absolutely, at the point that a client hits that age, we are communicating readily with them about what happens at age 60 or a condition of release or 65. We're spending a lot of time engaging and educating with a member because they do have to elect, just to be super clear, they have to elect to move it into an income phase or effectively the benefit disappears. That's where we're spending a lot of time, educating our advisors and members. That's right. Just really quickly on North, when the clients log in or the advisor on their behalf, they see their balance, they see their asset test. It's a visual reminder. It's always there all the way through that journey. That's a really strong lock in. Yeah. We're doing the same as we roll the pension out. We've got the first digital advice journey now that includes lifetime, and so we're basically building into both the digital advice journeys for people engaged with that, but also on the portal, those same sorts of things, showing them the benefit of that. It will be a conversation over time with the customers, particularly those 140,000 we've just turned this on for. We've now told them they've got it. We've encouraged them to have a look at the digital advice journey to see what it's actually done for them. We give them a retirement score, and it might be you're 70% ready for retirement or on track for retirement. We can show them that just having turned that on for them, or for the MySuper members, if they elect to turn that on, they'll be able to see the improvement to their retirement readiness score on the spot. Part of that conversation will be that that benefit doesn't go with them if they leave. Thank you. Yep. Follow up. Andre from Morgan Stanley, kind of a follow up question. I think $600 million, you said you have lifetime products overall. How does that split across advised versus. Self directed for that amount, that's all advised. That's all on the North Platform, and you can only access North with an advisor. That's all advised. In Melinda's case, that's more. I think the number's $3 billion or so, $3 billion because for the 140,000 customers. Must be more than that, actually 16 or something. Oh, there you go. I don't have that number in my head. Yeah, we basically for Lifetime Super, this is not, obviously we don't have the pension yet, but the members who now have that feature available to them is 140,000 of our 580,000 members. It's a significant portion of the book. My product's bigger than Edwina's. Just saying. How many do you know? What proportion of those are Advantage Advise, actively advise? There's a smallish proportion of my customer base that's actively advised, but a lot of them have an advisor attached. We're not sure how many are being actively advised. Not many. Only around 10% have advice fees being deducted from the super fund. They're the ones we know are advised, but others may be paying their advisor directly. It's a bit hard to say in my book. To clarify on the $600 million on North, that's $600 million. It's more than $600 million of funds under advice on the North Platform held by lifetime members. They can hold it in an account-based pension and a lifetime account, given 75% of those are new. It's mostly new money, but yet it's held in lifetime or a corresponding account-based pension. Thank you. Do we have any other questions in the room? Currently, no. That looks like we've actually got no more questions online as well. All that's left for me to do is to thank you very much for your time everybody this afternoon, and I wish you well. Good afternoon. Thank you everyone for your time. Really appreciate giving it up on this Monday afternoon. Thank you very much.

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