AMP Share Price Grow as they Maintain Customer Loyalty

Shares of AMP Limited [ASX:AMP] grew by 3.49% this morning.

The growth comes from the financial services group’s defence against the negative backlash that they received while under review from the royal commission.

AMP along with the big four banks and other financial advice groups, have all been under fire due to their distribution of unethical financial advice to its clients.

AMP have stood their ground, denying its alleged practice of maintaining client platforms which are known to be uncompetitive on prices.

AMP ensures its customers will remain loyal

Customer loyalty to AMP mainly stems from insurance terms in policy and pricing that is not possible to retain if they go with another brand or different product.

InvestorDaily reported that AMP stated:

‘There are reasons why customers may choose to remain in these products other than for cost competitiveness, for example insurance terms (both policy terms and pricing terms) that could not be retained if the customer moved to a different product.’

AMP said that its customers choosing to remain on its platform proves that their advice is not inappropriate or unethical in anyway.

They believe there is no evidence that bears AMP responsible for breaching terms of misconduct.

AMP’s recent share increase doesn’t only come from its defence against the royal commission.

Its Australian wealth management arm recorded a high net cash outflow, remaining in 2017’s first quarter’s guidance.

Strong cash flows in real assets also helped them turnover a profit.

Its capital saw strong figures in its external funds which mainly came from real assets while its banking division made a great profit turnover.

Despite going through a tight market period, AMP still managed to pull through some positive figures in regard to its overall growth.

By ensuring great prices to its customers, losing business is of no concern for AMP at this stage. They will further continue to defend themselves from the royal commission.


Ryan Clarkson-Ledward,
For Money Morning

PS: If you manage your own money or simply want to learn the most effective strategies to both grow and protect your wealth, this free report ‘The Three Best Investments in Australia for 2018 and Beyond’ is for you. Click here for details.

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor of Australian Small-Cap Investigator, a stock tipping newsletter that hunts down promising small-cap stocks by dissecting the latest events affecting the world.

To find out more about the publications Ryan works on and how you can subscribe, please click on the corresponding link here:

Money Morning Australia