AMP & AMPP, page-1414

calm down big fella.

Just keep a cool head.

If you can't handle a big mark-down in your portfolio, just take the losses as as little tax helper for you and move on.

If you're still happy to hold, then redeploy a few of those big property wins back into AMP at these low valuations.

I still think it's all about operating results from here, and the success of their efforts to address the historical problems in the business.

They have some excellent people now in management. Board are possibly still a bit underdone in terms of true commercial nous to handle the situation, but regrettably that's endemic across the Australian corporate class who sit on these Boards - just ask Oil Search shareholders.

They still have some structural challenges in the industry and their business model to address, but that's the game.

A lot of the people I speak who work there think very highly of the business and remain proud to work there (despite AFR trying to destroy the company and these peoples jobs for some odd reason).

You previously mentioned how the Bank should be advertising. No point just blanket advertising and squandering funds for something to do or to attract eyeballs that are somewhat useless to your business.

As a bank you either advertise in order to attract:

a. Depositors
or
b. Borrowers

AMP Bank has abundant depositors funds (one could almost argue too many deposits, just ask Wells Fargo), largely via the wealth network, whom it can offer slightly above market deposit rates, and then deploys these funds largely into mortgages via both the wealth network and the mortgage broker network.
Consequently the bank runs on a cost to income ratio nearly half that of the regional banks and substantially below the major banks. So without a heavy cost impost via advertising, you own a very attractive bank and also a well run bank. The new IT system is crucial in helping them increase mortgage turnaround times.

The key challenges I see going forward are:

Wealth Mgt re-shape: this is tough for everyone in the industry. You are competing against highly motivated specialised players (both in the platform space, ie Netwealth, Hub, Panorama and in the Super space, largely via Industry Super Funds). So the challenge is how does an integrated player compete.

AMP Capital: Some great parts in this private markets business. The key question is how and what parts come through the upheaval.
BTW - I saw some criticism of Kylie (Head of Real Estate) somewhere, and a glowing endorsement of all those who took their dosh and ran (Carmel, Boe, Tindall), I personally think Kylie has done a good job, presented a composed and measured front at a tough time. So good luck to her I reckon at least stepping up in this situation.