AMP has set its SMSF arm a specific level of contribution to its wealth management division revenue in the immediate future.
The goal for the business servicing the SMSF sector is to contribute 1 per cent new revenue growth of assets under management (AUM) within the wealth operation at a minimum.
Speaking at last week’s AMP Investor Strategy Day, wealth solutions and customer group executive Paul Sainsbury noted two specific channels of activity that would help achieve this goal, one being the recently launched product supermarket.
“That enables trustees, in a seamless, fully paperless way, to implement their investment strategy thorough a range of product providers, not just AMP,” Sainsbury noted.
“The supermarket gains an AUM-based distribution fee on all the products and services that are implemented by trustees through that portal.
“To give you an example, you can acquire a cash account from a range of providers through that portal and the distribution margin we receive is 27.5 basis points of AUM on all cash balances reoccurring.”
Trustees can also access their insurance needs via the supermarket and Sainsbury indicated AMP would receive an upfront payment of the gross premiums on these policies.
While he pointed out AMP’s SMSF administration services on the whole were an important part of increasing the organisation’s revenue stream, he singled out its accounting software offering, SuperMate, as a particularly important component of it.
“[SuperMate] provides a great opportunity for us to engage with accountants and expand the range of services we can provide,” he said.
“It’s rather important because right now the ATO is seeking to get accountants to move away from annual shoebox SMSF administration and they’re seeking them to report more frequently, and the capabilities and the systems and resources needed to do that is going to force them to be thinking about their business direction and whether in fact professional administrators have the scale and confidence to do that on their behalf.”
