AMP (ASX:AMP) share price hits fresh lows amid advisory board resignations

The lows just keep on coming for the financial services giant…

| More on:
Young boy looks shocked as he lifts glasses above his eyes in front of a stock market graph. representing three ASX 300 shares hitting 52-week lows today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The AMP Ltd (ASX: AMP) share price is having another disappointing day this Friday.

At the time of writing, AMP shares have sunk another 1% so far today and have plumbed a new all-time low of 98 cents a share. The company is presently trading at 99 cents a share.

Yes, AMP is today at its lowest share price point in its more-than-20-year history as a public company. The AMP share price has now slid more than 36.5% in 2021 so far. It's also down by 35.3% over the last 12 months, and by an eye-watering 81.5% over the past 5 years.

So why AMP's descent to these new lows today?

Well, there is no official news or announcements out of AMP itself that we can point to today. However, a report in the Australian Financial Review (AFR) today might shed some light.

The AFR reports that GPT Group (ASX: GPT) and Mirvac Group (ASX: MGR) "have been shortlisted" for a takeover of the running of the flagship AMP Capital Wholesale Office Fund.

Fund problems spark AMP share price fall?

A review of AMP's fund is currently being conducted by investment bank group Jarden Australia, along with an independent advisory committee (IAC). This review was sparked after some institutional investors reportedly raised concerns over the fund's future, according to the AFR.

The review's joint recommendations were to go to the trustee board of the fund. The investors in the fund will be given the final say about what happens going forward.

AMP is reportedly keen to keep management of this fund in-house with AMP Capital. However, the review has now shortlisted GPT and Mirvac.

However, the report also reveals that all three members of the Independent Advisory Committee resigned yesterday. They will be replaced by the independent chair of AMP Capital funds Management, Ming Long, and another independent director, Bob McKinnon.

A spokesperson for the AMP Capital Wholesale Office Fund trustee board told the AFR that "the members of the IAC had a different view about how the process should be conducted as we move to its final stage".

Perhaps it is this rapidly-changing situation that is causing some investors to bail out of AMP shares today.

At the current AMP share price of 99 cents, this company has a market capitalisation of $3.25 billion.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Financial Shares

Happy woman working on a laptop.
Financial Shares

AMP share price jumps on strong Q2 update

Let's see what the financial services company reported for the quarter.

Read more »

A woman holds up hands to compare two things with question marks above her hands.
Financial Shares

The pros and cons of buying IAG shares this month

Is this the right time to invest in the insurance giant?

Read more »

man analysing share price
Financial Shares

ASX 200 financial services rivalry: Should I buy Hub24 or Netwealth shares?

Let's compare the pair.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Financial Shares

Forget CBA, Macquarie is tipping a 40% return for this ASX financial stock

Let's see why this stock could be a better buy than Australia's largest bank.

Read more »

A group of stockbrokers sit in a room with several computer screens in front of them as they discuss the Zip share price and Zip's merger with Sezzle
Financial Shares

Up nearly 60% in a year, can Netwealth shares go higher?

Netwealth shares are up more than 200% over the past 5 years.

Read more »

Man smiling at a laptop because of a rising share price.
Financial Shares

Macquarie places 'outperform' rating on this ASX All Ords financial services stock

This financial services stock seems to be going from strength to strength.

Read more »

Woman and man calculating a dividend yield.
Financial Shares

Australian insurance sector: Does Macquarie prefer IAG or Suncorp shares?

Here’s an expert’s views on the insurance sector.

Read more »

A woman sits on a chair smiling as she shops online.
Financial Shares

Which ASX 200 financial share delivered better returns in FY25: IAG, AMP, or Zip?

We compare share price movements and dividend payments for these 3 ASX 200 financial stocks.

Read more »