Own AMP (ASX:AMP) shares? Here’s why this expert downgraded some of its funds

AMP has reportedly been dealt another blow.
The post Own AMP (ASX:AMP) shares? Here’s why this expert downgraded some of its funds appeared first on The Motley Fool Australia. –

Key points

A research house reportedly downgraded some of AMP’s North-branded investment funds late last year
An analyst is said to have noted “corporate uncertainty”, “cultural issues”, and “regulatory scrutiny” as key reasons for the downgrade
The AMP share price has fallen almost 5% year to date

Owners of embattled AMP Ltd (ASX: AMP) shares likely already know of its troubles.

After all, the AMP share price tumbled 35% over the course of 2021. It’s also currently 80% lower than it was 5 years ago.

Sadly, the financial services company has been dealt another blow recently, with investment analyst house Lonsec reportedly downgrading some of its managed funds.

At the time of writing, the AMP share price is 96 cents, 0.52% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained 0.01% today.

Let’s take a look at why Lonsec’s faith in AMP’s investment funds has waned.

Could be the latest blow to AMP?

According to reporting by the Australian Financial Review (AFR), analysts at Lonsec have downgraded 5 AMP index funds.

The publication claims the formerly ‘recommended’ funds have been dropped to ‘investment grade’, meaning the research house believes they have “fewer competitive advantages” than their peers.

The re-rating reportedly occurred late last year and applied to 5 North-branded index diversified investment funds: Growth, High Growth, Balanced, Defensive, and Moderately Defensive.

In a recent investor day presentation, released to the ASX, AMP noted its North platform is a key component of its “Path to new AMP” strategy.

Later, the company announced North’s managed portfolio had surpassed $4 billion of funds under management.

However, the old AMP seems to be plaguing it still.

Lonsec analyst Isrin Khor was quoted by the AFR as saying AMP’s drawbacks include a “material level of corporate uncertainty” and “well-publicised cultural issues and regulatory scrutiny”.

Additionally, Khor was reportedly concerned by high management turnover but noted the company’s new chief investment officer (CIO) Anna Shelley had made “significant progress” in her time with the company.

Shelley was appointed in May. She was previously the CIO of Equipsuper and Catholic Super funds and had worked with JANA and Perpetual Investments.

Finally, the analyst reportedly commented AMP’s funds were relatively expensive compared to those of its peers. An AMP spokesperson told the publication the company would review its charges to ensure they’re competitive.

AMP dropped fees for many of its platform’s funds last year.

AMP share price snapshot

2021 was a tough slog for the AMP share price, and it hasn’t got much better in the new year.

Year to date, the company’s stock has slipped another 4.95%. Though, it has gained more than 5% since this time last month.

The post Own AMP (ASX:AMP) shares? Here’s why this expert downgraded some of its funds appeared first on The Motley Fool Australia.

Should you invest $1,000 in AMP right now?

Before you consider AMP, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and AMP wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

When did AMP (ASX:AMP) last pay a dividend and when might the next one be?

Leading brokers name 3 ASX shares to sell today

Why did the AMP (ASX:AMP) share price fall 35% in 2021?

In the ‘dog basket’: 6 ASX shares that could rebound in 2022

Leading brokers name 3 ASX shares to sell

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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!