Live markets, Tuesday, November 30, 2021

Wealth giant AMP unveiled its renewed strategy under the leadership of new CEO Alexis George, focusing on banking and wealth while completing the AMP Capital spinoff.

As part of AMP Investor Day on Tuesday, the company said the AMP Capital split is on track to be completed in the first half of next year, with unlisted infrastructure and real estate assets at manage under a new stable, PrivateMarketsCo, for mainly institutional clients.

Upon completion, AMP will seek to “reposition core capabilities to drive growth” in national banking and wealth platforms and explore new opportunities in retirement solutions and other retail financial products.

AMP also pledged to continue cutting costs, targeting an additional $ 115 million by 2023-24, in addition to the current cost reduction program of $ 300 million.

AMP Director General Alexis George.Credit:

The strategy of PrivateMarketsCo, which will be listed separately on ASX, is to grow its client base under autonomous leadership, seek new clients and scale up existing investment strategies.

Ms George, who took office in April following the sudden resignation of Francesco De Ferrari in pursuit of a different strategy, said the two companies had significant growth opportunities but operate in “very different markets , with very different customers and geographic orientation “.

“The separation and spin-off will allow the two companies to accelerate their growth strategies, as well as simplify and improve their efficiency,” said Ms. George.

“The two biggest assets Australians and New Zealanders own are their home and their super – these are the needs that AMP caters to. “

PrivateMarketsCo chief executive Shawn Johnson said the company would thrive with more focus and independence after a sexual harassment scandal at AMP Capital led to massive layoffs and the loss of investment mandates.

“Our team has built a solid track record in infrastructure and real estate – and has the ability to expand into new contiguous areas and pursue new global growth opportunities, supported by increasing demand for private market assets. from investors around the world, ”Johnson said.

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