AMP Ltd (ASX: AMP) shares were in the spotlight on Thursday when the financial services company released its full year financial results for 2021 (FY21).
Despite forgoing a final dividend payout, the AMP share price gained 5% on the day. ASX investors appeared pleased by the company's reported 53% year-on-year increase in underlying net profits after tax (NPAT) of $356 million.
Atop the financial results, AMP shareholders were also updated on the progress being made in separately listing AMP Capital Private Markets.
And the new name of the standalone business was revealed – Collimate Capital.
Collimate Capital to list mid-year
Why Collimate?
According to the company, "Collimate is a scientific term that means to make rays of light perfectly parallel. It is a metaphor for alignment, clarity, and precision, which speaks to our vision and expertise in long-term value creation for our clients."
AMP's CEO, Alexis George confirmed that the demerger should be completed in the first half of 2022. She said the freshly branded Collimate Capital's leadership team is already in place:
Significant progress has been made on the demerger of Private Markets from AMP, and we're on track for completion in the first half of this year. Operational separation is now complete, including the transfer of the multi-asset group investment team into Australian Wealth Management, and the appointment of Chairman and Deputy Chairman designates to establish an independent board.
Addressing the benefits of the transformation for AMP shares, AMP Capital CEO Shawn Johnson added:
The new brand matches our determination to work in parallel alignment with our clients, partners, and communities to develop and deliver long-term, sustainable assets and returns.
As a demerged entity, Collimate Capital will provide a greater level of independence, stability, and accountability to further enable the delivery of superior results for all of our investors and act on growth opportunities to raise equity and deploy new capital.
How have AMP shares been tracking?
AMP shares, down 0.3% in intraday trading today are up a slender 0.7% so far in 2022. That handily beats the 4.9% loss posted by the S&P/ASX 200 Index (ASX: XJO) year-to-date, though.
