Ares U-turn on AMP buyout
Global asset management company Ares have pulled out of their proposal to buy AMP.
Friday, February 12th 2021, 6:00AM 
8 Comments
In a portfolio review of FY20, AMP have revealed that Ares Management have withdrawn their non-binding indicative proposal to buy out AMP.
The report said that, “Following detailed discussions, AMP has been advised last night by Ares that it does not intend to proceed with its non-binding indicative proposal for 100% of AMP [at] $1.85 per share.”
While acquisition of AMP is off the table, the report states that, “AMP continues to engage constructively with Ares in relation to AMP Capital as part of the portfolio review.”
The U-turn from global asset management giant, Ares, may come as a surprise to some but AMP’s broader position is one of positivity according to the report.
“The review has confirmed AMP’s transformation strategy for the AMP Australia (Australian wealth management and AMP Bank) and New Zealand wealth management businesses is likely to be the optimal outcome for shareholders. The AMP Board has therefore concluded the review of these assets.”
Ares put their non-binding indicative offer on the table shortly after the appointment of BlackRock Investment Management to the passive management of AMP’s KiwiSaver and wider investment scheme in October 2020.
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Comments from our readers
It will be interesting if the govt officials selecting the go forward default providers finally put AMP out of its misery. A lot of active KiwiSaver members are still paying AMP high fees.
Guess I'll go eat worms...
AMP Default Fund: 0.35%
AMP Conservative Fund 0.88%
AMP Moderate Fund 0.98%
AMP Moderate Balanced Fund 1.03%
AMP Balanced Fund 1.03%
AMP Growth Fund 1.03%
AMP Aggressive Fund 1.13%
Members also incur a fee of $23.40 per annum per investor, with an additional charge of $1.95 per month even if they choose more than one fund
With Blackrock index fees circa 10bps (depending on the asset of course), the AMP Kiwisaver fees should look more like:
AMP Default Fund: <0.25%
AMP Conservative Fund <0.35%
AMP Moderate Fund <0.40%
AMP Moderate Balanced Fund <0.40%
AMP Balanced Fund <0.45%
AMP Growth Fund <0.50%
AMP Aggressive Fund <0.55%
Bet they don't!!!
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