The AMP (ASX:AMP) share price is down 28% so far in 2021. Here's why

Here's what's been weighing on AMP's stock lately…

The AMP Ltd (ASX: AMP) share price has been struggling through 2021 so far. In fact, it's been struggling for years now. It has slipped a massive 78% since the start of 2018.

Right now, the AMP share price is $1.11. That's 28% lower than it was at the start of 2021.

Let's take a look at what's been weighing on AMP's stock lately.

a person wearing a sad faced bag on his head stands with hands to head in front of a red arrow plunging into the ground, denoting a falling share price.

Image source: Getty Images

A quick refresher

A brief history lesson is needed to get a grasp on why the AMP share price has been so heavy in 2021.

Let's go back to 2018, when the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was only just ramping up and AMP's shares reached their highest close of the last 5 years ($5.47 for those interested).

That was the last time the AMP share price saw such comparatively dizzying heights. AMP was dragged through the coals by the royal commission, during which it admitted to misleading ASIC and charging its customers fees without providing a service.  

As a result of the findings, ASIC began what turned into a 3-year investigation into AMP. The watchdog dropped the hunt in July, declaring that, despite the Royal Commission's calls for criminal charges, AMP was to get off scot-free.

However, AMP's stock never quite recovered from the plunge that followed the findings.

2021 for the AMP share price

The AMP share price has weathered a number of additional blows this year.

Early this year, the company looked to enter a joint venture with Ares Management Corp (NYSE: ARES). Ares had offered to buy AMP in 2020 before backing out.

Under the joint venture, Ares and AMP Capital's private markets would pair up, with AMP receiving a $1.55 billion payday.

However, Ares ghosted AMP, letting the joint venture's 30-day exclusivity period slide by.

If you've never been told not to work with your exes, you have now.

The AMP share price has also potentially been weighed down by its demerger plan. AMP announced its plans to split into AMP Limited, a retail-focused wealth and banking group, and Private Markets, a global investment manager, earlier this year.

Finally, AMP's new CEO, Alexis George, has been busy warning the market that AMP won't be undergoing a quick recovery.

Despite its recent woes, the AMP share price was boosted last month when the company released strong earnings for financial year 2021. Those interested can find the contents of the company's full-year report here.

Motley Fool contributor Brooke Cooper has no position 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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