I personally don't think they have any support nor mandate for...

I personally don't think they have any support nor mandate for any acquisitions.

They have very large businesses within the group, with decent positions in their respective markets. AMP first needs to be able to clearly demonstrate that they can operate these businesses efficiently and successfully for their customers.

Until this is clear, and returns on capital are compelling whilst customer retention is first stable, then growing, I don't think there is a mandate for an acquisition.

Acquisitions are often pursued by lazy management as a get out of jail free card. Then they spend the next few years fudging the books under the guise of 'integration costs'.

The only options for AMP are along the lines of:

1. Run their current operations well

2. Invest in those businesses where the use of capital is compelling (either enduring cost savings or achievable growth)

3. Private Markets Co cannot expect to either grow nor invest in their business until they are free from AMP. The reason is that AMP walked Ares all around town as the 'future owner' of AMP Capital, then the deal fell through. So despite customers (investors in the underlying funds) having a reasonable opinion of the AMP PMco team (as performance has been decent), they will find it difficult to back any new funds/initiatives until AMP has demonstrated that it does what it says. Shawn was pretty explicit about this on the Investor Day call. The whole Ares deal was a complete shambles the way it was handled and just eroded faith in the competence of the AMP Board, and demonstrated the incompetence of FDF who was bumbling the process.

4. Look for capital-light growth options that complement their existing distribution and serve clients needs (ie I expect this is the shape at Annuity/Retirement products will take, AMP defn doesn't have the balance sheet to fund these product, rather they would have to partner with Japanese capital providers)