AMP strategy – fewer more productive advisers
The key message from AMP chief executive, Francesco De Ferrari in today’s half-year results and strategy reset is that there will be fewer but more productive advisers and changes to buyer of last resort arrangements.
The AMP strategy is underpinned by a more than $1 billion investment and a capital-raising, but the most important message for AMP advisers is contained in a strategy which entails a focus on “direct to client” solutions and “reshaping aligned advice (buyback changes; fewer, more product advisers)”
This appears to confirm the manner in which AMP will focus on the most profitable elements of its advice business while leaving others with the company's briefing materials stating 20 per cent of advice practices account for 60 per cent of revenue .
It foreshadowed scaling up employed advisers, while scaling back aligned advisers.
At the same time AMP has declared it will further localise New Zealand wealth management, exploring options to divest and together with Resolution Life create a new holding company for its life insurance businesses.
The company has said its strategy would be supported by a $1 billion to $1.3 billion program to invest in transformation in doing so it also announced a $650 million capital raising
AMP announced that it also entered a revised agreement for the sale of its life insurance business to Resolution Life entailing $2.5 billion in cash and $500 million equity interest representing about 20 per cent of Resolution Life.
It said a new Australian-domiciled holding Resolution-controlled holding company would become the owner of the Australia and New Zealand insurance businesses.
The company declared a loss attributable to shareholders for the half-year ended 30 June of $2,292 million, leaving the company an underlying profit for the half of $309 million.
AMP also announced that its chief financial officer designate, John Patrick Moorhead had decided to leave the business and that the current AMP deputy chief financial officer, James Georgeson, had been appointed in an acting capacity.
Recommended for you
The new financial year has got off to a strong start in adviser gains, helped by new entrants, after heavy losses sustained in June.
Michael McCorry, chief investment officer at BlackRock Australia, has detailed how investors are reconsidering their 60/40 portfolios as macro uncertainty highlight the benefits of liquid alternatives.
Having reset its market focus to high-net-worth advisers, Praemium’s administration solution has been selected by Bell Potter in a deal that increases the platform's funds under administration by $6 billion.
High transition rates from financial advisers have helped Netwealth’s funds under administration rise by $3.7 billion in the fourth quarter of FY25.
