AMP plans 'investment renovation' and big changes to AdviceFirst

As well as reporting that a buyout offer from global asset management firm, Ares has been taken off the table, the 2020 report from AMP has also revealed that major changes are planned both in investment and AdviceFirst.

Documents released alongside the 2020 financial results, show that AMP plans to complete an “investment renovation”. The details of the renovation largely respond to the previously reported KiwiSaver asset reallocation to passive investment managed by US company BlackRock. This poses the question of whether this move from active to passive investment will continue to grow as a strategy for AMP in the coming year.

There are several changes coming for the AMP advice wing, AdviceFirst. Off the top the report states that “As part of the AdviceFirst strategy to grow scale and reach, one advice business was acquired in FY20 while organic net cash flows improved A$129 million on FY19.”

But while one advice firm was acquired the number of total AMP advisers fell from 62 to 57 during 2020. Of those advisers, AdviceFirst currently has 34.