Table of Contents Core operating activities 2 Current investment assets/ projects 3 Current financial structure 4 Management Structure 5 Future Investment Opportunities 7 Potential Agency Problem 7 Question 4 9 Question 5 10 Question 6 & 7 12 Systematic (market wide and industry wide) risks: 12 Unsystematic (market wide and industry wide) risks: 12 Section A: Profiling the corporate structure, and discussing the agency problems Core operating activities AMP Limited is a financial corporation based in Australia, New Zealand…
During which the share holders received 1.6 millionshares. Amp Limited demerged itself from Henderson Group plc in 2003 which was done on regional basis where AMP was based in Australia; The Henderson group took the hold of UK. AMP Limited’s financial data of 2011 shows that the company has 949,037 shareholders with a total share capital of 2,854,672,784 ordinary shares. The total number of Employees that work under the banner of AMP Limited is 6000, with 4131 employed and self-employed planners and has relationship with 6,000 independent financial planners. The company has two major business units, the first works under the name of AMP Financial Services where 4100 aligned and employed planners provide services regarding income protection, disability and life insurance, superannuation and superannuation services for business, retirement income, selected banking products and financial advices to its customers based in Australia and New Zealand. The second unit AMP Capital is diversified investment managers, who invest in fixed interest, property, diversified funds, equities and infrastructure. Currently they are managing $123 billion in assets for those who believe in AMP Capital and their strategies of creating wealth for their clients. The growth is on going with emergence into different countries worldwide. The merger between AMP with AXA Asia Pacific Holding in 2011 gave a boost to the growth of AMP Limited as being the strongest business of Australia and New Zealand enhancing their services while it creates a competitive force in the financial sector. Current investment assets/ projects The investment in AXA Pacific Holding has proved to be a strong policy for the company’s future growth as the merger has increased sales, company has become more competitive and an expanding advisory force. Based on financial report the company maintains its payout ratio of 75 to 85 percent by announcing a dividend of 14 cents per share for the year 2011. However the net profit attributable to shareholder of the company declined by 11% and reached $688 million compared to $775 million in 2010. The underlying profit shows 20% increase of $909 million than previous year, as the 9 months contribution from AXA Asia Pacific Holding has been included in 2011 financial results. The decline in the Net Profit was due to the cost of merger of AXA as the cost of transaction was $222 million and the negative movements of investments in market which had a cost of $50 million. The overall gain on the investment in 2011 was $1,464 million which was 69% lower than the previous year. The total investment assets the company owned in 2011 were $96,972 million compared to investment assets of 2010 which accounted to $85,120 million; there was an increase of 13% in AMP’s investment assets. The company also gained $3 million from exchange differences on translation of foreign operation in 2011, where in 2010 there was a loss of $21 million under exchange losses. The assets of the AMP under management increased by $44 billion being $115 billion in 2010 reached $159 billion by December 2011, there was an increase of 38% in its total assets smoothing the base of the company further, giving a firmness to its future activities and supporting its growth, so ...
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During which the share holders received 1.6 million shares. Amp Limited demerged itself from Henderson Group plc in 2003 which was done on a regional basis where AMP was based in Australia; The Henderson group took hold of
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