SuperConcepts has reported a 25 per cent slide in assets under administration (AUM) across the SMSF platforms within its stable as a result of client outflows.
The SMSF administration and software service supplier reported the figure as part of AMP’s 2019 full-year financial results, in which it also reported cash flow had declined marginally over the past financial year.
According to the financial results, total AUM with SuperConcepts fell by 26.2 per cent from $26.682 billion for the 2018 financial year to $19.686 billion in the 2019 financial year, a decline of $6.996 billion.
AMP did not provide details about the reasons for the decline in AUM in the results announcement, apart from stating it was “largely reflecting client attrition” and the decline in AUM from the third to fourth quarter of the financial year was $1.542 billion.
SuperConcepts AUM includes AMP SMSF, Multiport, Cavendish, SuperIQ, yourSMSF, JustSuper, Ascend and SuperConcepts platforms, but does not include Multiport Annual, SuperConcepts Accountants Outsource, SMSF Managers and More Superannuation.
AMP Wealth superannuation, retirement and platforms managing director and SuperConcepts chief executive Lara Bourguignon said the past year had seen major changes at the SMSF business, which had reset its strategy towards consolidation and simplification.
“We faced into a number of legacy issues from the five years of mergers and acquisitions and announced a three-year plan for organic growth,” Bourguignon said.
“Our focus has been consolidating technology stacks to ultimately bring efficiencies to our own business and to clients. This has been long and difficult work, but we have made strong progress and 2020 will see the benefits of our technology consolidation.
“We’re also delivering on simplification of product sets to ensure our clients’ needs are best served to help grow their own businesses.
“While 2019 had challenges we had planned for, we are now in a position to deliver on our long-term growth plans as we gain the necessary efficiencies for our ongoing viability and leadership in the SMSF sector.”
