Here’s what happened to the AMP (ASX:AMP) share price in the FY21 third quarter

It has been a busy second-half so far for AMP…

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The AMP Ltd (ASX: AMP) share price has moved in circles since the company entered the second-half of FY21.

AMP shares kicked off the second quarter at $1.125 apiece and have travelled sideways for most of the period. At the end of 3 months, the financial services company’s share price closed at 99 cents.

Today, AMP shares are swapping hands for $1.125, down 0.44%.

What happened in Q3 FY21?

The biggest story that affected the AMP share price in the third quarter of FY21 was the company’s half-year results.

AMP delivered a robust scorecard, highlighting a rebound across key financial metrics. This was largely driven by management’s focus on the Australian wealth management net cash outflows and controllable costs.

The board decided to maintain a conservative approach to its capital and dividends until the demerger and future strategies are finalised. AMP did not declare an interim dividend for the period which led to shareholders dumping the company’s shares.

Another story worth mentioning was that the Australian Securities and Investment Commission (ASIC) formally ended its investigation into AMP.

The allegations centred around suspicions of criminal conduct related to AMP’s “fees for no service” conduct. This revolves around charging fees to people who did not have access to a financial advisor.

However, ASIC dropped the case, opting not to pursue criminal charges against AMP.

Lastly, the company’s shares hit a new multi-decade low after three members of the Independent Advisory Committee resigned. The report from the Australian Financial Review stated that GPT Group (ASX: GPT) and Mirvac Group (ASX: MGR) “have been shortlisted” for a takeover of the running of AMP’s $7 billion Capital Wholesale Office Fund.

About the AMP share price

In the months following AMP’s results, its shares hit a multi-decade low of 88.5 cents in late September, before rebounding higher.

When zooming out to the last 12 months, the AMP share price has fallen 20%, with year-to-date down around 30%. The company’s shares have lost about 80% of its wealth since early 2018.

In context, the S&P/ASX 200 Index (ASX: XJO) has gained 20% from this time last year and is up more than 10% year-to-date. The ASX 200 also reached a record high of 7,632 points in mid-August.

AMP presides a market capitalisation of roughly $3.69 billion and has approximately 3.3 billion shares on its registry.

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Motley Fool contributor Aaron Teboneras 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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