High-profile fund manager Geoff Wilson has cast doubt on AMP’s ability to bounce back from the scandals emanating from the royal commission, pointing to deep cultural issues.
Speaking at the Future Generation Investment Forum in Sydney this week, the chairman of Wilson Asset Management quoted an unnamed AMP-aligned adviser as saying the issues exposed so far are “just the tip [of the iceberg].”
“[The adviser] said, [AMP] is rotten all the way through," Mr Wilson explained.
Alongside this cultural hearsay, Mr Wilson also expressed doubt about the merits of investing in AMP.
Sharing an anecdote, Mr Wilson said he had asked a “very well-known” executive in the insurance industry about determining a price at which he should purchase AMP shares.
“He said, ‘I can’t come up with a value for you.’ And to me, the risk is … I just don’t know what price AMP is a buy at. There mightn’t be a price,” Mr Wilson said.
AMP’s share price was $5.46 on 9 March and has fallen more than 30 per cent to a low of $3.69 on 11 May in light of revelations from the banking royal commission, which has prompted resignations from its chief executive and multiple board directors, as well as a number of class action lawsuits.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 25 May 2018‘Never been a better time’ for advice: MorningstarBy Killian Plastow
- 25 May 2018ASIC takes former AFSL director to courtBy Reporter
- 25 May 2018Henderson Maxwell owner launches investigationBy Aleks Vickovich
- 25 May 2018CBA issues update on AUSTRAC proceedingsBy Reporter
- 25 May 2018Employers granted unpaid super amnestyBy Jessica Yun
- 25 May 2018Bernardi backs bank withdrawal from wealthBy Aleks Vickovich
- view all