The AMP Ltd (ASX: AMP) share price's downwards trajectory over recent years has undoubtedly been disappointing for investors, as the company's chair acknowledged at last week's annual general meeting (AGM).
Especially as, while AMP's stock tumbled 35% in 2021, the company decided to forego paying shareholders dividends.
But now the financial services provider has offloaded its Collimate Capital business, could its stock be heading towards greener pastures? Here's what AMP's management is expecting the company's future to bring.
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What's next for disappointed AMP shareholders?
The AMP share price slipped 35% last year. It's also currently 78% lower than it was five years ago. But the company is confident it's now on the right path.
"We acknowledge the disappointing shareholder experience – in terms of share price and a lack of dividends," AMP chair Debra Hazelton said at the company's AGM on Thursday.
Under-performance was in large part the result of the significant disruption throughout the industry driven by regulatory change based on findings of the Financial Services Royal Commission in 2018.
Your board has been listening to you … We are making significant progress dealing with legacy matters, simplifying the business and setting AMP up for a better future, focusing on growth and delivering better shareholder outcomes.
AMP's Debra Hazelton
However, AMP isn't ready to get back on the dividend horse. Though, it plans to hand back most of the proceeds of its Collimate sales to shareholders through share buybacks and a capital return.
AMP will review its dividend policy after doing so.
Meanwhile, the company's new CEO Alexis George has jumped straight in to set AMP on a new strategic path.
"My vision for AMP is to restore its standing as a trusted company, helping Australians and New Zealanders to create their tomorrow and achieve their financial goals," George told the AGM.
The strategic path is made up of three tracks – simplifying the business, repositioning it, and exploring new opportunities.
George noted much of the work towards simplification has been done by selling off Collimate.
Now it will work to reposition towards growth opportunities in AMP Bank and its wealth management Platforms business.
Finally, AMP will look to explore new partnerships and opportunities to grow the business. New retirement products are one key area on which it is focused.
But the path forward didn't appear to sate disappointed investors. Nearly 21% voted against the company's renumeration report at its AGM. Another 4% would have brought about a strike.
Additionally, AMP's control of the AMP Capital Wholesale Office Fund (AWOF) is in uncertain territory again. Stakeholders requested its management be put to a vote yesterday.
Losing control of the fund would half the earnout payable by Collimate real estate and domestic infrastructure business' buyer Dexus Property Group (ASX: DXS).
AMP share price snapshot
While last year was a disaster for the AMP share price, the stock is outperforming in 2022.
Right now, the AMP share price is $1.11. That's 11% higher than it was at the start of the year.
For comparison, the S&P/ASX 200 Index (ASX: XJO) has slid 5.7% in that time.
The financial services stock is also performing relatively in line with the index over the last 12 months. It has gained around 1% since this time last year.
