SuperConcepts has added 7520 funds during the first half of 2018, which the SMSF administrator attributed to the acquisition of the More Superannuation and SMSF Managers SMSF businesses, along with organic growth.
Financial services giant AMP, which released its 2018 half-year investor report today, said SuperConcepts is continuing to grow fund numbers and market share.
SuperConcepts now supports 66,643 funds, representing 11.2 per cent of the SMSF market.
However SMSF Advice adviser numbers plummeted from 55 in the first half of 2017 to 16 in the first half of 2018, a 71 per cent drop.
AMP said it expects the business to drive scale efficiencies and improve its operating profit contribution.
AMP acting chief executive Mike Wilkins told a media briefing in Sydney today that SuperConcepts is a relatively small business within the larger component that is AMP’s traditional wealth management business. This includes a large number of corporate funds.
“SuperConcepts is still a growing business for us. We see that whole SMSF platform as being an important long-term contributor for AMP,” Wilkins said.
“It’s well priced, so we would expect that SuperConcepts will continue to grow.”
Total assets under administration in the first half of 2018 were $24.2 billion. SuperConcepts contributed $21 million from business operations to other revenue during this period, up $1 million on the first half of 2017.
AMP currently provides professional administration services to 22,925 funds and software as a service to a further 43,718 funds.
The wealth management division’s operating earnings rose 5.7 per cent to $204 million, driven by growth in other revenue from advice and SMSF businesses, as well as lower controllable costs.
“This growth has offset the impact of margin compression, which was elevated in 1H 18 due to the final MySuper transitions in Q2 17,” the report said.
Assets under management increased 6 per cent to $132 billion.
Other revenue increased by $6 million or 12 per cent from the first half of 2017 to $57 million in the first half of 2018, driven by growth in advice and SMSF recurring revenues.