AMP plans to build its advice-based distribution
AMP chief executive Andrew Mohl says the company will be a wealth management powerhouse with strong competitive positioning in advice-based distribution, product manufacturing and investments after its demerger.
Tuesday, December 2nd 2003, 3:01AM
Mohl told a Securities Institute of Australia luncheon in Auckland yesterday, that AMP post demerger sees growth not only in Australia and New Zealand, but also in Asia – on a targeted basis.
Mohl will become chief executive of the new regionalised AMP should shareholders give their blessing to the demerger of the Australasian business from its troubled United Kingdom Henderson Global (HHG) operation at a special meeting on December 9.
Mohl left NZ industry participants and watchers in no doubt the new AMP will choose its partners very carefully.
While the Henderson Global connection in the United Kingdom had been a very good one for passive funds management, it had not been for active equities.
However, Mohl said the worst of the impact from its troubles on AMP’s brand and businesses in New Zealand and Australia were now over.
There had been a substantial improvement in sentiment toward AMP in the past few months and the key planner/customer relationships were now back at its traditionally very strong levels, he said.
After the proposed demerger, the New Zealand side of the business will move from contributing less than 5% of group profit to about 10%.
Mohl says the new AMP will be a wealth management powerhouse with strong competitive positioning in advice-based distribution, product manufacturing and investments.
"We intend to pursue cost leadership in product manufacturing to drive down unit costs, notwithstanding a market-leading 40% cost to income ratio in the first half of 2003," he said.
AMP also intended to build and diversify its advice-based distribution.
"In simple terms, higher productivity and planner numbers will drive top line growth while the focus in product manufacturing will lower unit costs," he said.
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