AMP is today providing an update on its group strategy and growth opportunities at its Investor Strategy Day, being held in Sydney. This includes discussion on the changing role of financial advisers.
The strategy will direct investment towards higher-growth businesses in wealth management, AMP Bank and AMP Capital; leverage AMP’s strengths in overseas markets; and maintain focus on driving cost efficiency.
Key elements of the strategy include:
- Tilt investment to higher-growth, less capital-intensive businesses. Release and recycle capital from lower-growth business lines to fund growth and returns.
- Grow wealth management by broadening its revenue streams via increasing contributions from advice and SMSF, while continuing to invest in product and platform development.
- Build and integrate a goals-based advice operating system across face-to-face, phone, digital and corporate super employer channels. Explore options to extend advice capability and systems into international markets.
- Leverage AMP Capital’s investment management expertise in fixed income, infrastructure and real estate to selected international markets, including Europe, North America and Asia.
- Continue the rapid growth and increasing contribution of China businesses.
- Manage Australian wealth protection, New Zealand and mature for capital efficiency and value, emerging embedded value as soon as possible.
- Continue focus on costs to drive operational leverage.
AMP Chief Executive Craig Meller said:
“Our strategy continues AMP’s shift from a product and distribution business to a customer-led organisation focused on helping our customers achieve their personal goals.”
“We are uniquely positioned to benefit from favourable domestic and global thematics including the mandated growth of the Australian superannuation system, a growing banking market and the structural increase in demand for investment yield as the world’s population ages.
“The strategy is focused on realising our potential while adapting to an increasingly competitive market place and technology-driven disruption.
“In Australia, we will continue to lead the wealth management market, changing the sector’s traditional economics by driving greater revenue from advice and self-managed super fund (SMSF) services. We will help more Australians get more advice, more often through our transformed goals-based operating system.
“We will also diversify and drive revenue growth internationally through investment management, particularly infrastructure and real estate, and by extending our unique wealth operating system to offshore players. Our partnerships with market leaders in China (China Life) and Japan (MUTB) provide strong platforms for future growth.
“The approach for our Australian wealth protection, New Zealand and mature businesses is to manage them for value and capital efficiency. These businesses have significant embedded value and we continue to look for ways to economically accelerate the realisation of this value.
“The strategy will be underpinned by a continuing focus on operational efficiency and cost discipline right across the group.”
