Fund Manager Summary on AMP Ltd (ASX:AMP)
AMP Ltd (ASX:AMP) is viewed as undergoing a significant turnaround, as emphasized in recent fund manager commentary. Centennial Asset Management notes that despite historical reputational challenges stemming from the Banking Royal Commission, AMP has been effectively executing a focused strategy to enhance profitability and revenue, particularly through its North platform, which has shown strong growth and is seen as undervalued. Recent inflow momentum and cost reductions support a positive outlook for the next 12 to 24 months, with expectations of market share gains in differentiated retirement products. However, risks remain tied to the company's ability to sustain these trends and deliver on guidance. Investors are advised to closely monitor inflow trends in key divisions, as the stock currently trades at a significant discount to its peers, which may not last if the turnaround continues to show progress.
Commentary From The Managers
There are 2 insights from 2 fund managers regarding their investment in AMP Ltd (ASX:AMP) available on Thesis Tracker.
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Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Centennial Asset Management
25 Sept 2025
$1.66
Summary
- Centennial Asset Management notes that AMP has faced significant challenges since the Banking Royal Commission in 2019, leading to reputational damage and client losses.
- However, Centennial Asset Management believes the company is now on a credible path to turnaround under new leadership since 2021.
- AMP has implemented a focused turnaround strategy, including selling underperforming assets and returning capital to shareholders.
- The firm has refocused on core operations, leading to improved revenue growth and profitability expected over the next 12–24 months.
- Recent results indicate accelerating inflow growth within AMP’s platform business, with costs decreasing due to a successful cost-out program.
- The North platform, representing about 44% of group NPAT, is highlighted as a key asset that Centennial Asset Management views as undervalued by the market.
- In 1H FY25, the North platform achieved +7.4% underlying growth compared to 1H FY24, indicating strong momentum.
- With differentiated retirement products, the platform is expected to attract new advisers and gain market share, driving better-than-expected inflows in the coming months.
- Centennial Asset Management anticipates that the share price will re-rate if the turnaround continues to gain traction.
- Investors are encouraged to monitor inflow momentum across the Platform and Superannuation & Investments divisions, as well as AMP’s ability to meet guidance.
- Currently, AMP trades at approximately 14.5x forward P/E, a 28% discount to the ASX 100, which Centennial Asset Management believes may not persist if improvements continue.
Wilson Asset Management
3 Sept 2025
$1.63
Summary
- Wilson Asset Management continues to monitor AMP Ltd as a significant investment opportunity.
- AMP has shown potential for profitability, contributing positively to Wilson Asset Management's portfolio.
- The fund manager notes that AMP operates effectively in cycles, particularly when asset prices are low.
- There is a common market sentiment where assets are undervalued, akin to the phrase ‘the baby gets thrown out with the bathwater.’
- Wilson Asset Management sees potential for recovery and growth in AMP as market conditions improve.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in AMP Ltd (ASX:AMP)?
Fund managers including Wilson Asset Management and Centennial Asset Management have invested in AMP Ltd (ASX:AMP).
Why do fund managers invest in AMP Ltd?
Fund managers invest in AMP Ltd due to its potential for recovery following a significant turnaround since 2021. The company has improved its profitability through a focused strategy that includes selling underperforming assets and cutting costs. Analysts highlight strong growth in its North platform, which constitutes a large part of its profits. With AMP trading at a discount to the ASX 100, there are appealing growth prospects and increasing inflows expected over the next 12–24 months, making it an attractive investment.
What happened to AMP Ltd (ASX:AMP)?
Fund managers are optimistic about AMP Ltd's investment potential due to its focused turnaround strategy implemented since 2021 under new leadership. Despite past reputational damage, AMP has sold underperforming assets, returned capital to shareholders, and streamlined its operations. Key indicators such as accelerating inflow growth in its North platform, which significantly contributes to profitability, suggest positive trends ahead. With improving cost management and expected revenue growth over the next 12–24 months, fund managers believe AMP is undervalued in comparison to the ASX 100, making it a compelling investment opportunity.
What is the short interest in AMP Ltd (ASX:AMP)?
The short interest in AMP Ltd (ASX:AMP) is 0.84% which makes it the 224th most shorted stock on the ASX. Of the 2.5B shares that AMP Ltd has on issue, 21.4M have been sold short.
What does AMP Ltd (ASX:AMP) do?
AMP Ltd. engages in offering services in financial advice and superannuation, retirement income, banking, and investment products. It operates through the following segments: AMP Bank, Platforms, Superannuation & Investments, New Zealand Wealth Management, and Group. The AMP Bank segment offers residential mortgages, deposits, and transactional banking services. The Platforms segment provides superannuation, retirement, and investment solutions. The Superannuation & Investments segment market competitive super and pension solution across individual and corporate super through SignatureSuper. The New Zealand Wealth Management segment focuses on the wealth management solutions. The Group segment includes partnerships, costs not recovered from business units, investments income, and interest expense on corporate dept. The company was founded in 1849 and is headquartered in Sydney, Australia.