Another top contributor was AMP (ASX:AMP), the leading independent wealth management company in Australia and New Zealand, which returned 20%. AMP’s fiscal year end results revealed that the growth in assets under management exceeded expectations. Although its Wealth Protection division continues to face challenges, the company’s actions on claims management are beginning to show positive results. Additionally, management remains diligent on cost discipline and has brought controllable costs down 2.6% for the group, despite cost inflation of 2.5-3%. Management continues to return capital to shareholders via dividends and has recently committed to a share repurchase program in order to neutralize its dividend reinvestment program. Finally, we believe AMP is well positioned to benefit from expected increases in retirement savings and wage growth in Australia.
From David Herro (Trades, Portfolio)'s Oakmark International Fund: First Quarter 2014 Commentary.
