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 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 »