AMP bucks downward trends
The message repeated throughout the AMP annual general meeting today was that while global economies are showing weaknesses, AMP’s outlook for 2001 was positive.
AMP chief executive Paul Batchelor told the meeting that funds under management rose more than $7 billion to more than $298 billion in the first quarter of 2001.
"While weak equity markets will inevitably impact our investment income, we have taken decisive action to cushion this impact, deferring projects where prudent and continuing a company-wide focus on driving down costs," he said.
He said the pervading weaknesses in equity markets will also adversely impact funds management businesses, namely Henderson Global Investors, but added he expects Henderson to still deliver a margin above the 2000 result.
Batchelor predicts the adverse impact of the weak international markets on AMP's bottom line will abate by the second half of this year which "should deliver a sound 2001 result for AMP shareholders".
AMP has been transformed, says Batchelor, since it decided to branch out from traditional life insurance four years ago to a broad based financial services mix with a specific focus on the wealth creation and protection sectors of funds management and superannuation. Batchelor says the transformation was complete in 2000.
Also to emerge from the AGM was an affirmation by AMP chairman Stan Wallis that AMP was not planning on ditching its general insurance business, which is made up of the former GIO.
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