High-profile fund manager Geoff Wilson has suggested it may never make sense to invest in AMP – no matter how low the embattled company's share price falls.
Wilson Asset Management chairman and portfolio manager Geoff Wilson spoke at the Future Generation Investment Forum in Sydney on Tuesday alongside executives from domestic and global investment firms.
While Mr Wilson said he enjoyed "find[ing] value" in "going where everyone doesn't want to go," he expressed doubt about the merits of investing in AMP.
Sharing an anecdote, Mr Wilson said he had asked a “very well-known” executive in the insurance industry about determining a price at which he should purchase AMP shares.
“He said, ‘I can’t come up with a value for you.’ And to me, the risk is… I just don’t know what price AMP is a buy at. There mightn’t be a price,” Mr Wilson said.
AMP’s share price was $5.46 on 9 March and has fallen more than 30 per cent to a low of $3.69 on 11 May in light of revelations from the banking royal commission which has prompted resignations from its chief executive, its board directors as well as a number of class action lawsuits.
Mr Wilson added that he had spoken to an AMP-aligned financial planner who told him the current scandals at AMP were "just the tip [of the iceberg]".
"He said, [AMP] is rotten all the way through," said Mr Wilson.
AMP could face further risks according to analysts at Morgan Stanley, with the negative flow trends across the wealth giant expected to cont...
The wealth and trustee arm of MyState, TPT Wealth, has seen a slight increase of 1 per cent during the first quarter of financial year 2021,...