AMP optimistic after annus horribilis
AMPis confident of a reversal of fortune following last year’s $5.5 billion loss, announcing today a renewed commitment to regional wealth management and flagging alliances with global asset managers as a key focus.
At the annual general meeting held today in Sydney, AMP chief executive officer Andrew Mohl was quick to put a positive spin on last year’s “horrendous” performance by the group.
Following AMP’s de-merger and in light of its departure from the listed property trust sector, Mohl says that partnerships with global fund managers are an increasingly important element of lifting efficiency and performance levels.
“We are expecting broadly steady margins inAMP Capital Investorswhich, given the loss of earnings from our exit from the listed property trust sector last year, will reflect underlying growth in margins,” he says.
Mohl adds that an anticipated slowdown in direct property investing combined with new government incentives for superannuation contributions will have positive flow-on effects for the wealth management business.
Mohl also pointed to promising cash flow trends as an indication that things are turning around.
“The money that comes in through new sales, premium payments, superannuation contributions and so on - were up by 22 per cent in the March quarter on the same time last year, ” Mohl says.
According to AMP chairman Peter Wilcox, the groups de-merger with its UK arm HHG had thrown the group into a state of crisis, but the worst of it is over.
“Our priority last year was to fix AMP’s problems, the focus this year is focusing on ensuring that AMP lives up to its potential,” Wilcox says.
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