As part of its expansion plans for its wealth management arm, AMP announced in its half-year results it will be focused on generating additional revenue from its advice and SMSF businesses.
In its results announcement for the half year ending 30 June 2017, AMP said a key priority for the company was growing its market share in the $2.9 trillion Australian wealth management market.
“In 2018, AMP is targeting an additional two per cent revenue contribution from its advice and SMSF businesses,” AMP said in the half year report.
“This investment will also help Australians get more advice, more often through our goals-based operating system which will also improve productivity.”
AMP chief executive Craig Meller said AMP has “already made progress on this front” which will show up in the full-year results.
Mr Meller said he expects that in the full-year results, ‘other revenue’, which encompasses AMP’s SMSF business, will be up 10 per cent compared with 2016 and that it will accelerate further in 2018.
AMP’s SMSF administration and software services, SuperConcepts added 2,734 funds during the first half of 2017, and now supports 56,304 funds, representing 9.5 per cent of the SMSF market, according to the results.
“AMP currently provides professional administration services to 17,723 funds and software as a service to a further 38,581 funds,” AMP said.
“Total assets under administration in the first half of 2017 were $22.6 billion. The growth in funds in the first half of 2017 is mainly attributed to the acquisition of BPO Connect’s SMSF business.”
According to AMP, SuperConcepts contributed $20 million from business operations to ‘other revenue’ in the first half of 2017, up $2 million from the first half of 2016.
AMP also stated that SuperConcepts plans to further increase its fund numbers and market share through organic growth and further acquisitions.
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