AMP SMSF signals strategy change
Following the release of AMP’s first half-year results, chief executive Craig Meller signalled a change in the company’s SMSF growth strategy.
AMP SMSF reported its assets under management for the second quarter of 2014 at approximately $17.9 billion compared with $17.3 billion for the first quarter.
Speaking at a media briefing, chief executive Mr Meller said AMP SMSF’s strategy up until last year was to grow principally by acquisition, whereas now the bank will focus more on organic growth.
“Between ourselves and our 50 per cent joint venture partner Super IQ, we’ve grown our share of the SMSF [admin] marketplace to between three and four per cent over the past two or three years,” Mr Meller said. “It might not sound like a very large number, but it’s probably 10 times the next biggest administrator in the marketplace.”
“We believe that going forward, our strategy is going to be more focused on organic growth rather than through approaching other administrators and switching them to our IT capability.”
Mr Meller also noted that after a period of modest growth in AMP’s SMSF arm, he expects that growth to “accelerate forward” in the coming year.
Overall, AMP’s first half-year net profit has decreased by three per cent to $382 million from the same time last year, but the company has increased its underlying profit by 16 per cent to $510 million.