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 businessman carrying a briefcase looks at a square peg or block sinking into a round hole.
Earnings Results

Block shares are diving 7% despite significant profit growth in third quarter

Financial services company Block has released its 3Q FY24 report.

Read more »

A businesswoman on the phone is shocked as she looks at her watch, she's running out of time.
Dividend Investing

Want to bag the upcoming Macquarie dividend? You better hurry!

Here’s what you need to know.

Read more »

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

IAG shares are now up 38% this year. What's next?

It's been an solid year for the stock.

Read more »

Stressed, unhappy and tired scientist with a headache working on a computer in a lab. Worried, anxious and frustrated pathologist, researcher and doctor struggling with burnout, tension and strain.
Financial Shares

Are Medibank shares a bargain buy after being sold off?

Could this be the time to pounce?

Read more »

Man looks confused as he works at his laptop. watching the Magnis share price movements
Financial Shares

Down 21% this year, are NIB shares a buy?

Could this be the turning point?

Read more »

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

AMP share price lifts 8% in October amid improved cashflows

Investors were impressed with AMP's third-quarter report.

Read more »

Smiling man sits in front of a graph on computer while using his mobile phone.
Share Market News

This ASX All Ords stock is down 37%, and one insider just bought up over $500,000 worth

This company director just raised his stake by 1,735%.

Read more »

A young boy reaches up to touch the raindrops on his umbrella, as the sun comes out in the sky behind him.
Financial Shares

IAG share price lifts amid AGM and FY25 guidance

The insurance giant held its annual general meeting today.

Read more »