Why is the AMP share price looking up today?

Posted: 21 October 2021 12:55 pm
News
AMP-Shares-21Oct_1800x1000_Finder

Shares in the wealth management giant have been largely stable in the last 6 months.

AMP (ASX: AMP) investors have not had much reason to cheer over the last 2 years as legal and management woes have beset the wealth management giant, smashing its market value. However, on Thursday, the stock seemed to be witnessing a rare bounce back, up nearly 5% to $1.17 in early trading.

Why has the AMP stock price lifted?

The latest share price move comes on the back of AMP providing an update on its third quarter cash flows. It reported funds of $180.3 billion under management as at 30 September, down from $187.6 billion at the end of June.

Investors were more focused on the fact that the company’s core Australian wealth management unit reported lower outflows in the quarter, largely due to the end of a government program allowing the early release of their superannuation funds to tide over the pandemic.

Net cash outflows at AMP's main wealth management business were $1.4 billion in the 3 months to September, down from $1.8 billion in the same period last year. Overall assets under management at the unit were little changed at $131.2 billion.

AMP has faced persistent outflows since the financial services royal commission in 2018 found widespread misconduct at the company, which prompted the exit of senior executives and left AMP struggling with top leadership issues since then.

Restructuring

In the last quarter though, AMP saw better than expected returns in the market, with investment gains offsetting $1.4 billion of net outflows from the wealth business.

AMP’s North wealth management business also added $1.7 billion in assets, while AMP Bank increased its loan book by $300 million to $21.3 billion.

The encouraging numbers come at a crucial time for AMP, as it prepares to spin off its private markets investment arm AMP Capital, which manages about $50 billion in infrastructure and real estate assets and operates in markets across North America, Europe, the Middle East and Asia.

“With most of Australia in lockdown during the third quarter our businesses have focused on supporting customers, continuing to drive forward our simplification and preparing for our demerger next year,” AMP’s new chief executive Alexis George said in a statement.

“We have a clear focus on our priorities ahead, including to deliver the demerger of our Private Markets business from AMP in the first half of next year.”

Serious about investing? Here's your new unfair advantage

Ticker Nerd uses advanced software to track hundreds of signals and data points to find stocks before they blow up. Don't miss out!
Get started for free

Considering buying AMP shares?

If you are keen to buy AMP shares, you should consider investing through an online share trading platform.

Keep in mind that not all platforms offer the same list of stocks. Some trading platforms offer US stocks only, so make sure to select a platform that offers ASX-listed stocks.

Choose from the dozens available for Australian investors. Compare the features and fees from the plethora of trading platforms available for Australian investors.

Looking for a low-cost online broker to invest in the stock market? Compare share trading platforms to start investing in stocks and ETFs.

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

Get more from Finder

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site