AMP plans to restart share buyback

Wealth manager AMP plans to restart a $200 million share buyback that it put on hold last year when it initiated a portfolio review of its businesses.

“The buyback was put on hold during the portfolio review, but following our demerger announcement, we now intend to recommence the program,” chair Debra Hazelton will tell shareholders at the company’s annual general meeting on Friday.

“Returning capital to shareholders in this way is highly value accretive given the current share price,” she said.

AMP shares have floundered since 2018, when the financial services royal commission found widespread misconduct within the company, including charging “fees for no service” and charging dead clients life insurance premiums.

AMP shares are down more than a quarter so far in 2021 and currently trade at $1.14.

Earlier this month, AMP decided to spin off and list its private markets investment arm AMP Capital after a potential sale fell through.

The business manages about $50 billion in infrastructure and real estate assets and has a global reach that includes North America, Europe, the Middle East, Asia and Australia and New Zealand.

Ms Hazelton will also say AMP’s board plans to restart ordinary dividends as market and business conditions allow.

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