How and Why AMP will recover from this and get back to $5 in a few years. No Astral., page-34

AMP makes money from funds not advice fees. It has made money and still does through advisers using AMP products. The so called distribution network. This is changing.

What is not changing is that AMP will not be dependent upon advice fees for significant parts of its income in the near future. It does invest in advice businesses and mY dimire so in future but I would guess this produces profit in the low tens of millions only and requires capital that AMPseems to regard assone type of baggage not a useful resource. Possibly as they have not used it well.

Using an an index fund is a valid strategy for many. There are many who have advisers that use index funds or passive funds. These are different choices.

I hold AMP as I have lost money from the full $5.60 worth. I was hoping to see it get back to closer to $3 within a 3 year period after the fall. This would have a been a great return, including 20 cents capital back at $2.20. If it can now get back to $2.70 from here with no capital return as the result of a takeover from someone who can afford to keep the life company, I could make 50% even more quickly from here.

Obviously,with hindsight I wish I had sold out when Murray was appointed. I should have trusted my own judgement then and got $3.50. But I can only choose the optimal path from here. Even I am surprised at the destruction in value of the share price but I have said recently that fair value IMO lies in the $1.60 to $2.70 range depending on your optimism.