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Goldsworthy on AMP and the Royal Commission

You will be aware that there has been a lot of media coverage about AMP in the past two weeks. We personally have been very saddened to hear the reports as we have been proud to be associated with AMP for the last 55 years.

If you hold an AMP product as part of your portfolio,  you might be wondering does this affect me?

Below and attached is a bit of a summary of what is going at a product level, as well as some Frequently Asked Question’s which might help to alleviate your concerns:

  • Any money in AMP superannuation and managed investment products are held in trust structures and cannot have any more than 2% of the underlying investment invested in AMP – ie:

    • $100,000 held in an AMP  Badged Super account – couldn’t have any more than $2,000 invested in AMP as a company itself, the rest would be split up in other companies – on the contrary though, other Super providers could potentially have a higher weighting towards AMP as a company.

    • An example of this below:

      • Product – AMP Flexible Super Retirement Account

      • Investment Option –  Super Easy Moderately Conservative

      • Exposure to Australian Shares as part of this investment option as at Dec 17 was 17.26% of which the top 10 holdings were:

        So an account balance of $100,000 – has $17,260 invested in Australian Shares, of which the above companies form the bulk of that investment – it is an AMP  badged product, but that doesn’t mean the funds are invested in AMP  as a company per se.
  • When we provide advice to clients, we provide advice to put the clients’ interests before our own – we have large list of products we can use and in many cases, a lot of our clients do not even hold an AMP product. Unfortunately this is not the case with all advisers, as such this is why they need to scrutinize advice processes and procedures.

We are certainly advocates for the Royal Commission as it will help to identify issues and eradicate them from the industry to make it a better industry overall in the future.

This is a great opportunity, to take a look at your products to see what the underlying investment options are comprised of – this will differ person by person, so if you would like this information or have any questions please do not hesitate to contact us on 07 3421 3700.