annual meeting will be positive for stock!, page-3

<< Lets get those clear those cobwebs out! >>

Goblin,
If you see the UK investors in AMP managed funds as 'cobwebs' you may just get what you are asking for.

Once the AMP exit door is clear we should see the stock make a slow crawl back up - at least to the $5.50 in the short term. Safe bet that institutions, who are buying at current levels ~$5 and will be offloading some of the recent placement stock bought @ $5.50 once the AMP share price get back to those levels.

Holding AMPISX
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AMP investors in UK warned to get out
Source: LONDON AAP
Date: 2003-May-14 06:58 PM

Financial advisers have told AMP's 2.3 million British customers to cut their losses and leave the funds.

AMP's with-profits performance at its three companies in Britain - Pearl, NPI and London Life - was described as dire by British newspaper the Daily Mail after Pearl announced it would slash pension and endowment payouts for the second time this year.

That means a standard 25-year STG50 ($A124.63)-a-month endowment, similar to a superannuation fund, will pay STG59,002 ($A147,063.81) - a five per cent cut from STG62,114 ($A154,820.54) in January and down 27 per cent from the STG81,124 ($A202,203.39) paid at the start of last year.

"These are funds that you do not want to be in," Patrick Connolly, director of independent financial adviser Chartwell, told the paper.

"It is a case of whether you will be paying too high a price to get out."

His warning was echoed by Lee Robertson, the managing director of investment adviser Quorum, who said: "People can't just sit and do nothing."

AMP is moving the STG20 billion ($A49.85 billion) in the three companies' with-profit funds out of shares and into safer but potentially poorer performing cash and bonds.

It will cut losses but means the companies will not benefit from a stock market recovery.

"We are reducing the risk profiles of these funds. There will be more security and less volatility," a Pearl spokesman told the paper.