Sharechat Logo

AMP Capital NZ cut costs in 2011, parent may ask for more

Tuesday 24th July 2012

Text too small?

AMP Capital Investors (New Zealand), which manages about $16 billion of assets, sharpened its cost-base in the 2011 calendar year, but may have to strip out more as its parent embarks on an efficiency drive.

The New Zealand unit of the Australasian fund manager trimmed operating expenses by more than a quarter to $24.2 million in the 12 months ended Dec. 31, according to its financial statements lodged with the Companies Office.

AMP Capital NZ's employment costs fell $3 million to $15.3 million, while other operating expenses dropped by 39 percent to $8.9 million.

That comes as the parent looks to cut its cost base by A$25 million, according to Australian media reports. AMP Capital is the second-biggest fund manager across the Tasman with almost A$125 billion in funds under management as at March 31.

A spokeswoman for the local unit said a cost efficiency plan is underway but no decisions have been made.

AMP Capital NZ returned to profit with net earnings of $5.2 million last year, compared to a loss of $10.1 million in 2010. Fee income was flat at $36.8 million, while dividend income more than doubled to $4.5 million.

The fund manager provided for $615,000 in planned redundancy costs as at Dec. 31, having utilised $1 million in the calendar year.

"In 2010, the group committed to a plan to change the organisation structure," it said in a note in the statements. "Following the announcement of the plan, the group recognised a provision of $988,000 for the expected restructuring costs, which included employee termination benefits."

AMP Capital is a subsidiary of Australian wealth manager and insurer AMP.

Last year the group paid A$13.3 billion in cash and shares for rival Axa Asia Pacific's Australian and New Zealand businesses, selling back the Asian units to French parent Axa SA.

The dual-listed AMP shares were unchanged at $4.99 in trading on the NZX, having shed 5.9 percent this year.

The stock fell 0.5 percent to A$3.83 on the ASX, and is rated an average 'outperform' based on the consensus of 14 analyst recommendations compiled by Reuters, with a median target price of A$4.379.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

AMP 1H earnings creep ahead of forecast, appoints Craig Meller as CEO from next year
NZ sharemarket to unleash demand for an extra $2 billion from investors, says AMP
AMP Financial Services suffers 1Q cash outflow, NZ shines
AMP NZ Office 1H profit falls 28.2%
AMP Financial Services NZ's earnings fall
Daily ShareChat: AMP
AMP granted clearance to buy AXA
Stocks to watch: Good news start for AMP
AMP still interested in AXA despite rejection
NAB trumps AMP offer to scoop AXA AP's Australasian business