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SuperConcepts AUA down in March quarter
***UPDATED*** SuperConcepts has recorded a 14 per cent decline in its assets under administration (AUA) in the first quarter of 2020, new figures reveal.
SuperConcepts AUA stood at $16.915 billion as at 31 March 2020, according to an AMP statement to the ASX.
This is a decrease of $2.771 billion from the end of 2019, when AUA was $19.686 billion.
The SuperConcepts AUA figure includes AMP SMSF, Multiport, Cavendish, SuperIQ, yourSMSF, Justsuper, Ascend and SuperConcepts platforms.
However, the figure did not factor in Multiport Annual, SuperConcepts Accountants Outsource, SMSF Managers and MORE Superannuation.
An AMP spokesperson said the SuperConcepts result “was primarily driven by weaker investment markets”.
Elsewhere, AMP’s assets under management (AUM) reduced to $116.3 billion as at 31 March 2020, a decrease from $134.5 billion in the fourth quarter of 2019.
AMP noted that it primarily reflected COVID-19-related market movements. It said the average AUM in the first quarter of 2020 was $131.3 billion.
AMP said its Australian wealth management net cash outflows of A$1.9 billion included outflows of A$430 million from a number of exiting corporate super mandates and A$205 million from the impacts of Protecting Your Super legislation.
Excluding these impacts, Australian wealth management net cash outflows are at A$1.3 billion, AMP said.
Further, AMP’s Australian wealth management cash inflows increased by A$1.1 billion (24 per cent), which it said was largely due to strong inflows into its North platform.
“Markets in Q1 were extremely volatile particularly in March, with significant falls in equities, fixed income and key commodities impacting our assets under management,” said AMP chief executive Francesco De Ferrari.
“We have seen some recovery since the quarter-end, but expect market volatility to continue and the economic impact of the pandemic to emerge over the remainder of the year.”
Editor's Note: This story originally ran under the headline 'SuperConcepts business tumbles in March quarter'. SuperConcepts chief executive Lara Bourguignon has also provided a response to the article, below:
"Assets Under Management in an SMSF are constantly fluctuating based on the investment strategies of trustees and the general market conditions and measuring the success or otherwise of an SMSF business on AUM is unhelpful and generally irrelevant.
"We are seeing the effects of COVID-19 on trustee portfolios reflected in these quarterly figures, with many SMSF owners either in pension phase and suffering from turmoil in the property and share markets, or as small business owners struggling with those dramatically changed conditions.
"We have adapted our business promptly to the current environment and are doing everything that we can to support our clients through this period including being ready to accept applications for early release of super and reduction of minimum pensions.”
Adrian Flores
Adrian Flores is the deputy editor of SMSF Adviser. Before that, he was the features editor for ifa (Independent Financial Adviser), InvestorDaily, Risk Adviser, Fintech Business and Adviser Innovation.
You can email Adrian at adrian.flores@momentummedia.com.au.
Why don't we simply publish lodgement stats? It's how the industry is measured, where the benchmark is set by the regulator, and provides true choice as clients could reasonably move to providers with a strong lodge record. In effect, a Heatmap as is being employed by APRA for other parts of the industry. Have never understood AUA in this space due to control as Mr Hey succinctly points out.0- Publishing of lodgement stats by the ATO now there's an idea that won't go far. Not sure the ATO would want to expose their lack of enforcement on continually under performing tax agents0
- I agree, we have seen complaints lodged to the AFCA made public and no reason why lodgment statistics of every business can't be also. The ATO also need to look long and hard at Tax Agent's who are years behind in their own taxes, I know this has to be declared but I also know of a Tax Agent who was (and probably still is) 4-5 years behind on their SMSF - no recourse, still operating, and many clients of her have been left in tatters as a result - it could be argued they could sue the TPB for failing to adequately govern the tax license of this individual. We cannot be told to do this and do that and ludicrous guidance around investment strategies yet the TPB allow completely unfit for duty tax agents to operate!0
- I have never understood the need to report AUM for the SMSF administration business. SuperConcepts has no control over how trustees invest with their Self-Managed Superannuation Funds.
However a 14% decline in the AUM is not a bad result for the SMSFs administered by SuperConcepts. A 14% decline in AUM is well below the decline in equity markets. I acknowledge that the majority if not all of the SMSFs in the sample will not adjusted downwards the values of unlisted assets & direct property but the result should still be a seen a positive for the SMSF sector.
I await Phil La Greca's quarterly analysis of asset allocations which will provide a more detailed insight into the performance of SMSFs0- SMSF's are far more agile and transparent which is why many people like them - ASIC should take note instead of focusing on where a super fund becomes economical on a fee basis.0
- What about numbers of funds they look after and total annual billing run rate? The main metric to go by for accountants, FUM have very little to do with it in SMSF. Perhaps the board don’t understand a selling point of SMSF‘a is they aren’t billed on a % of assets like retail funds.0
- AMP discloses SC fund numbers with financial statements (ie every 6 months). As for run rate?- are you talking about the pace at which the clients are leaving the business.0
- Absolutely click bait editorial!2
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