AMP Announces Transformational Strategy for Wealth Management

AMP’s three-year transformational strategy aims to make a shift into a simpler, client-focused business that is higher growth and higher return.

AMP stated the strategy will be supported by a A$1-1.3 billion program to invest in the transformation.

Under the strategy, AMP states it will:

  • Divest majority ownership in AMP Life to release capital and further localise New Zealand wealth management, exploring options to divest
  • Reinvent wealth management in Australia, helping clients realise their ambitions
  • Grow contemporary solutions in Australian wealth management including shifting focus to direct-to-client channels and digital solutions
  • Further integrate AMP Bank solutions with wealth management, continuing strong growth;. target double-digit earnings growth over medium term
  • Fix legacy issues in Australian wealth management including reshaping aligned advice (buyback changes; fewer, more productive advisers), simplifying super

The company also intends to grow AMP Capital through differentiated capabilities such as in real assets and public markets and pursue international growth opportunities.

It stated it will build on its relationships in China, Japan and the United States and explore opportunities to expand real asset and global equity capabilities into international markets.

Also under the strategy, is creating an AMP culture that is client led, entrepreneurial, and accountable, with effective management of financial and non-financial risk.