“Corporate instability” has resulted in research and ratings house, Zenith, placing AMP Capital’s funds “Under Review”.
A client release from Zenith has declared that “following a number of executive and investment personnel changes, a pending strategic review of the AMP Group and the risk of further staff instability linked to corporate governance concerns” the funds had been given “Under Review” status.
“Over the past couple of months, Zenith has been notified of several key investment personnel changes, including the departures of Carmel Hourigan, global head of real estate, Genevieve Murray, head of Australian equities and David Allen, chief investment officer – global equities,” the ratings house client update said. “Furthermore, the firm has been subject to ongoing corporate governance concerns following the appointment (and subsequent demotion) of Boe Pahari as chief executive officer (CEO) of AMPC and its broader commitment to demonstrating best practice in this area.”
“More recently, the AMP group has announced its intentions to review its asset mix and the potential cost synergies from divesting its underlying businesses.”
The ratings house said that, in its opinion, corporate instability across the AMP group had “the potential to result in further key investment personnel changes”.
“We believe there is significant uncertainty around the strategic direction of the firm, pending the completion of the business review and the appointment of a replacement CEO. In terms of corporate governance, Zenith continues to engage with AMPC to understand its progress and steps taken to align its approach with wider industry practice.
“Going forward, Zenith will continue to monitor the developments at AMPC, seeking an improvement in corporate stability and greater clarity around the strategic direction of the firm.”