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

A man holds his head as he looks at his laptop and contemplates more bills to pay.
Financial Shares

Down 19%! Is the GQG share price selloff an overreaction and buying opportunity?

Is now the time to pounce on this beaten down stock? Let's see what Goldman Sachs is saying.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Financial Shares

IAG share price reaches new 5-year high! What next?

It’s been a great period for the insurance giant. Could it keep rising?

Read more »

Shot of a young businesswoman looking stressed out while working in an office.
Financial Shares

This $7 billion ASX 200 stock just crashed 11%. What's going on?

There's trouble in India and it's weighing on this stock today.

Read more »

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Financial Shares

Here's what this top broker is saying about Macquarie shares

Is this investment bank heading to a new record high?

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Financial Shares

Up 25% in a year, why this ASX All Ords stock has 'plenty more upside'

Analysts think this stock could still have plenty of gas left in its tank.

Read more »

Two people climb to the summit and raise their arms in success as the sun rises brightly over the mountains.
Financial Shares

'Strong momentum': 2 ASX financial shares backed by top fundie for 2025

ASX financial shares had a strong trading session on Tuesday with several new price records set.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Financial Shares

AMP shares on radar as M&A spotlight shines bright

The stock has rallied hard in 2024.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Financial Shares

Are IAG shares still a buy for dividends at a 5-year high?

Here's my take on IAG's place in an income portfolio today.

Read more »