AMP will no longer be on the S&P/ASX 20 index when trading opens on June 18, following a quarterly rebalance of S&P's Australian indices announced today.
AMP's spot on the index will be taken by packaging manufacturer Amcor.
The wealth giant has denied the index-change will impact its inflows from indexed investment products.
"The change is expected to have minimal impact on investment flows from indexed funds given these funds typically track broader market indices," AMP told Financial Standard.
The investment products built on the S&P/ASX 20 include a BlackRock ETF, the iShares S&P/ASX 20 ETF, which did not have AMP in its top-10 holdings as at April 30.
The S&P/ASX 20 index measures the performance of 20 actively-traded and highly liquid securities that are among the largest securities listed on the ASX by float-adjusted market capitalization.
"In order to limit the level of index turnover, eligible non-constituent securities will generally only be considered for index inclusion once a current constituent stock is excluded due to a sufficiently low rank and/or liquidity, based on the float-adjusted market capitalization," the index's methodology says.
"Potential index inclusions and exclusions need to satisfy buffer requirements in terms of the rank of the stock relative to a given index. The following buffers aim to limit the level of index turnover that may take place at each quarterly rebalancing, maximizing the efficiency and limiting the cost associated with holding the index portfolio."
The quarterly rebalance also brings changes to the S&P/ASX 200. Taking a spot on the index is point-of-service finance company AfterPay Touch, alongside Inghams Group and Appen.
The next rebalance of the S&P/ASX 20, 50, 100 and 200 index constituents is expected on the third Friday of September.