AMP is set to make more financial products available to SMSFs via its software service and expects to see a resulting increase in the fund inflows generated from the sector.
Speaking at the financial services giant’s results announcement last week, AMP chief executive Craig Meller said: “The portal that comes with the [SMSF] software service will be making a broad range of products, not just AMP products, available to the self-managed super fund clients.
“We’ve had very strong take-up of the AMP bank cash management account [and] a little flow from AMP Capital, but we’d expect the general flows for AMP and other external partners there to grow over time.”
In regard to the overall AMP SMSF business, Meller said it was going very well.
“There are two components to it after we made a series of acquisitions over the past three or four years. The first is providing a software service, which is essentially the general ledger accounting for self-managed super funds, and the second is to carry out full administration and we’re one of the few players that can play on both sides of that market place,” he noted.
He admitted the cost base of the operation increased last year due to the integration process of the many acquisitions AMP had made in the space onto one information technology platform.
Further, he revealed the administration side of the business had experienced some post-acquisition client leakage, but all of the acquisitions had met their budget retention levels and growth at an underlying level had been strong.
“The growth in the software funds has been very strong,” he said.
‘So we’re very optimistic about the go forward outlook for that business and expect it to start making a contribution to the group at the end of this year and the beginning of next year.”