AMP (ASX: AMP) share price rises despite net exits

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The director of financial services in difficulty AMP SA (ASX: AMP) The stock price is rising today after the company provided a third quarter update.

Currently, the stock price is up 3.57% to $ 1.16.

AMP operates four divisions: Australia Wealth Management (AWM), New Zealand Wealth Management (NZWM), AMP Bank and AMP Capital.

AMP share price

Source: Rask Media AMP share price over 5 years

Wealth management saved by the market movement

AWM’s assets under management (AUM) were flat during the quarter at $ 131.2 billion.

Overall, the division had net outflows of $ 1.4 billion, but this was offset by market movements.

Net inflows are equal to cash inflows such as member pension contributions and renewals minus any outflows such as buyouts or pension payments.

Market movement refers to the underlying value of the assets held. If the overall value of assets increases, so does the asset under management.

Positively, MPAs wealth platform product North – a direct competitor of Network Group Ltd. (ASX: NWL) and Hub24 Ltd (ASX: HUB), saw net inflows of $ 1.7 billion thanks to price drops and advisor inflows.

It was a similar story for NZWM, with market gains compensating for capital outflows.

Kiwisaver – the equivalent of a retirement pension in Australia – has chosen not to renew AMP’s status as the default supplier.

AMP Bank outperforms the system

The bank’s total loan portfolio grew by $ 300 million to $ 21.3 billion thanks to high ownership prices.

In July and August, residential loan growth exceeded that of the credit market by 1.1 times.

AMP Capital’s net outflows accelerate

Assets under management decreased 4% to $ 180.3 billion as a result of net outflows of $ 12.0 billion. For the same period in 2020, the activity recorded net outflows of $ 2.4 billion.

AMP Capital lost a $ 9.6 billion mandate to an environmental, social and governance (ESG) index fund.

An additional $ 2.4 billion was the result of subsequent asset repurchases and sales.

AMP Capital is expected to be split from the larger AMP group in the first half of 2022.

Is this the lowest for the AMP share price?

It’s been a scorching race for AMP shareholders, with the share price hitting as low as $ 0.92 in 2021.

The market was clearly impressed with the result, despite the net exits.

Is this the lowest for the AMP share price?

May be. The 170-year-old bank still has a wide reputation and notable strengths.

AMP is worth something. What is it, I’m not too sure. I focus on companies that are growing, or at least that do not experience successive net exits.

The company looks cheap on traditional measures of value. But I would avoid AMP for now, as well as those other two cheap ASX stocks.


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