Is the AMP Share Purchase Plan worth considering?
A: The AMP Share Purchase plan is at a maximum price of $1.60, so on paper, it looks ok. It is being offered under the ASX rules for these plans so the maximum subscription is $15,000 (minimum is $1,000). There is probably a good chance that it will be scaled-back. Applications close on 5 September 2019.
Do I think AMP is a long term buy? No, I am not a fan of the new strategy that the CEO has put together, which looks like a “back to the future” approach to wealth management. I really doubt that AMP can make “advice accessible to all” and make a return for shareholders at the same time. It doesn’t have the brand to do this.
That all said, AMP as a “sum of the pieces” is probably worth more than the current share price. AMP Bank, and the funds management part (AMP Capital) are readily disposable assets. My prognosis for AMP is that the AMP Board will eventually respond to shareholder pressure and abandon the new wealth management strategy and execute a break-up plan.