The AMP (ASX:AMP) share price is down 6% over the past month. Here's why

The financial services giant has faced headwinds in recent weeks…

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The AMP Ltd (ASX: AMP) share price has struggled over the past month, extending its run into the red.

Whereas the S&P/ASX 200 Index (ASX: XJO) has returned around 3% over the past month, AMP shares have posted a loss of 6% over the same time.

At the closing bell today, the AMP share price finished flat at $1.06.

Douugh investor looking angry while talking on phone and looking at computer

Image source: Getty Images

What's been happening at AMP?

Over the past month, AMP has faced a rough trot when it comes to legal issues and regulatory headwinds.

For starters, at the beginning of July, AMP's FY20 performance was a catalyst for weakness. It reported an approximate 33% decline in underlying profit, in addition to asset outflows of $8.3 billion.

There appeared to be a slight recovery on the charts soon afterwards, as AMP Capital confirmed the sale of its Global Equities and Fixed Income (GEFI) business.

However, the $185 million sale to Macquarie Group Ltd (ASX: MQG) was not enough to sway investors, as selling pressure remained in situ.

Next, AMP announced it was giving its management fees a haircut at AMP Capital. The AMP share price struggled on this news.

AMP is currently unwinding its subsidiary's assets and spinning off its major divisions.

The moves come as AMP Capital seeks to hold onto its Community Infrastructure Fund (CommIF), which is still under contention from three separate bidders, so it seems.

In addition, the full effect of controversial managerial and capital management decisions have likely carried through on the charts for the AMP share price.

For instance, AMP's failed takeover by Ares Management Corp has been an inflection point for investors. So are the criminal proceedings brought about from the Royal Commission into Banking.

To illustrate this point, the AMP share price did not recover when ASIC dropped its case of "fees for no service" against AMP, as apart of the wider proceedings.

AMP share price snapshot

The AMP share price has posted a loss of 31% this year to date, extending the previous 12 months' drop of 25%.

These returns have lagged the broad index's gain of around 25% over the past year.

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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