Why AMP (ASX:AMP) shares might be in the spotlight next week

The battle for control of AMP's wholesale office fund could be about to heat up.

| More on:
man and woman discussing superannuation

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 coming week might be a big one for the AMP Ltd (ASX: AMP) share price. The company is reportedly struggling to keep a hold of its $7 billion office fund as investors band together to vote AMP Capital out of its management position.

According to reporting by The Australian, a group of investors against AMP Capital's management of the AMP Capital Wholesale Office Fund (AWOF) could be made up of half the fund's register.

As The Motley Fool Australia recently reported, an independent committee is expected to table its recommendations for the fund's management next week.

If AMP Capital loses control of AWOF, it might find itself in a weak position ahead of its demerger from AMP.

As of Friday's close, the AMP share price is $1.17, 2.18% higher than it ended Thursday's session. That's also 0.8% lower than it was this time last week.

Let's take a closer look at the battle that might soon be heating up.

The AMP share price could soon be in focus

Market watchers might want to keep their eyes peeled for news on AMP Capital next week.

AWOF's investors are reportedly demanding that control of the fund be shifted to an entity with stronger governance, more alignment with investors' interests, and a quality management platform.

The Australian reports that it understands local superannuation funds are leading the push against AMP Capital's management. They might have convinced around half of the fund's investors to vote against AMP Capital.

AMP Capital needs to receive support from 75% of the fund's register to keep its seat at the head of AWOF's table.

However, The Australian also reports that some investors claim most of the voting parties are still undecided.

Their decision will be between AMP Capital, GPT Group (ASX: GPT), or Mirvac Group (ASX: MGR).

GPT reportedly plans to merge the fund with its own wholesale office fund if it wins AWOF's reins. Mirvac's expected to run the fund as a pooled vehicle if it gains control.

Right now, the AMP share price is 24% lower than it was at the start of 2021. However, it has gained 3% over the last 30 days.

Motley Fool contributor Brooke Cooper 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 »