AMP chief Francesco de Ferrari has ‘right ideas and needs time’

AMP chief Francesco de Ferrari has a supporter in former AMP chief investment officer Merv Peacock.

Merv Peacock, former chief investment officer for AMP Capital Investors.

AMP chief Francesco De Ferrari has a supporter in former AMP chief investment officer Merv Peacock, who says he has the right ideas and needs time.

Peacock, like his former boss Andrew Mohl, is devastated with the position the company finds itself in, saying “it is very disappointing.”

The now 73-year-old left the company in 2006 after a stellar career in which he and former boss Leigh Hall held sway over corporate governance in Australia in the 1980s and 1990s through AMP’s funds management arm.

Hall was influential in the then Australian Investment Managers Association and before the domination of industry funds AMP was a key shareholder in most of the blue chip companies.

In an interview with The Australian, Peacock said: “I think the problems have come about because of a lack of continuity, there have been too many different people running the place.”

“Too often we call for heads when things go wrong and sometimes that is not the best answer,” he added.

Asked about De Ferrari, Peacock said: “I like his style”.

“It‘s been a tough business to be in and AMP has been hammered,” he added.

“There is no doubt we have lost trust and we have to work hard to get it back again.”

A portfolio manager in the 1980s, Peacock left as the investment boss in 2006 when Mohl was the AMP chief executive following the tumultuous reign of Paul Batchelor.

He thinks the company made the right move in selling its life insurance operation but wants the structure to stay the same.

“I think we need AMP Capital and the bank to support the advice business,” he said.

Peacock, like De Ferrari, is a big supporter of the advice business.

“There are not many people in it these days and I think there is definitely a place for it, people need good financial advice,” he said.

Asked what the advisers need to do, he said “work hard and not make mistakes.”

“Industry funds have done very well but it will be interesting to see how their unlisted assets go over the next few years,” he added.

Peacock thinks De Ferrari needs support and more time to get his job done.

Asked whether he would come back to help him Peacock said, “that wouldn’t leave me the time to spend on my golf, going up the coast and red wine.”