'It's too late now': why AMP missed the boat

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The wealth management firm is continuing its track record of poorly timed or ill-thought strategic decisions with new chairman Debra Hazelton's portfolio review, according to East 72's Andrew Brown.
"The lost opportunity was index," he said. "AMP could have become the biggest index/ETF/passive guys in Australia and potentially the region."

Mr Brown said the company's continued underperformance was a key reason AMP Capital failed to attract mandates. According to AMP's latest investor report, external mandates in Australian equities make up just 1 per cent of the company's external assets under management.

Selling the bank now is not a good idea at all. Selling that financial advisory business – who's going to buy that? — Andrew Brown, East 72

Australian equities account for 23 per cent of AMP's internal assets, which are invested on behalf of the company's sprawling superannuation and wealth management business and assets owned by the life insurance division, which has been sold to Resolution Life and will now switch to external.

"Its too late now. It's the end of the road for AMP," Mr Brown said.

He said years of poor decision-making meant that talent walked out the door to better opportunities.

Meanwhile, AMP's portfolio review has been launched three years too late, he said.

"You could go back three years and they could have sold the bank for much more than it is worth now," Mr Brown said.

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"Selling the bank now is not a good idea at all. Selling that financial advisory business – who's going to buy that?"

"It's three years too late and they're trying to do it at a time when most of the external market valuations are lower. All those people who have said there's a fantastic sum-of-the-parts-play, that's not the…
Michael Roddan, Jonathan Shapiro
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