AMP (ASX:AMP) share price hits fresh lows amid advisory board resignations

The lows just keep on coming for the financial services giant…
The post AMP (ASX:AMP) share price hits fresh lows amid advisory board resignations appeared first on The Motley Fool Australia. –

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.

The post AMP (ASX:AMP) share price hits fresh lows amid advisory board resignations appeared first on The Motley Fool Australia.

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More reading

The AMP (ASX:AMP) share price hit an all-time low of $1 today
The AMP (ASX:AMP) share price has fallen another 7% in a month. What’s next?
Here’s why the AMP (ASX:AMP) share price is down 4% in a week
How have ASX financial shares performed during the August 2021 earnings season?

What does the future look like for the AMP (ASX:AMP) share price?

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.

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