AMP Limited (ASX: AMP) shareholders have endured a tough year or so as the AMP share price has nearly halved in the last 12 months.
Despite jumping more than 4% on Friday, the AMP share price is still down 28.7% so far in 2019.
So, while the AMP share price is sitting at just $1.77 per share at the time of writing, will it continue to slide lower in 2020 or is now the time to buy the dip?
Why the AMP share price has fallen lower
The biggest factor that continues to weigh on the AMP share price is the fallout from the 2018 Financial Services Royal Commission.
The AMP share price took a hammering over the course of last year, plummeting 25.7% lower in one day after its "fee for no service" scandal surfaced during last year's hearings.
The Aussie wealth manager has since overhauled its leadership team including a new Chairman and CEO, but has seen its share price slide lower as it continues to try to sell off its troubled life insurance business.
What's the outlook for 2020?
AMP has ramped up its customer remediation plans in recent months, having set aside $700 million in December 2018 and a further $200 million in January 2019 for consumers who were wronged.
Under new leadership, AMP looks to be streamlining its operations amid an ongoing review of its advisor network in 2019.
After posting a $2.3 billion half-year loss on 8 August, AMP implored shareholders to stick with it throughout the transformation process despite recording a net cash outflow of $3.1 billion for the half-year.
The Aussie wealth manager said its planned $3.3 billion life insurance business sale was unlikely to go ahead, which does throw a spanner in the works for 2020.
AMP shares are currently yielding a lofty 8.0% per annum, but this is largely due to the dramatic share price fall from more than $5 per share just 18 months ago.
Should you buy the dip?
Regardless of whether you believe in AMP management's turnaround plan for the troubled wealth manager, the reality is that there are probably better buys on the ASX.
While IOOF Holdings Ltd (ASX: IFL) has similarly struggled to arrest its share price slump in 2019, the likes of Magellan Financial Group Ltd (ASX: MFG) have shown that not all wealth managers are created equal.
With more and more Aussie super funds bringing their wealth management in-house, I can't see the next big revenue earner for the AMP, while the ongoing consumer remediation could be a potential headwind for growth and image change.
Overall, I think Magellan has proven itself to be a consistent performer for a long enough period of time to be considered the top wealth management stock on the ASX heading into 2020.
