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.
Some more numbers to mull over.
The 2016 half year report indicated that the number of funds administered was 16776, add the BPO Connect acquisition gives you 18576 funds. The 2017 half year report tells us that SuperConcepts now administers 17723, so approximately nett 850 funds have walked out the door.
I say a net loss because SuperConcepts has a horde of Marketing & Sales people running around the country developing product & selling services.
Therefore, to the 850 you can add every other new fund added to the platforms. The question that needs to be asked is just how bad must client service be if excluding acquisitions, SuperConcepts is losing more funds than they are putting on?
The devil is in the detail and once again AMP have hidden the facts in a cloud of spin.
So lets go back & look at the histiric published numbers.
Last qtr cash report indicated that the of funds administeted was approx 19500. An increase of 3600 predominantly due to BPO Connect.
This report 17723 so thats a difference of 1800. All due to a reporting error. Well some questions should be asked about that reporting error.