Financial Standard Comments - AMP wealth management grows AUM AMP reported an increase in its wealth management business for the first quarter of 2015, seeing assets under management up 6% to $116.1 billion. https://www.financialstandard.com.au/feed/latest?story=49670920 Thu, 07 May 2015 14:45:24 +1000 Thu, 07 May 2015 14:45:24 +1000 en-AU Copyright 2026 Financial Standard 5 Comment by Bewildered Industry Observer (SMSF Specialist Adviser)

The AMP push into the SMSF sector has been an interesting case study. AMP has tried to win over trustees of SMSFs who historically shun advice from large financial institutions.

Over the past 3 years AMP and its part owned business SuperIQ have made some bullish statements about their position in the SMSF market. Generally the claim is to have between 80,000 to 100,000 SMSF accounts within 5 to 10 years.

AMP has spent heavily on investing in or acquiring established SMSF administration businesses (SuperIQ - $30M; Cavendish $20M; Super Concepts/Tranzact/SmartSuper/YourSMSF). In addition AMP inherited Multiport from the AXA acquisition.

Over the past 3 years AMP has expended much time, effort and money in technology and positioning the AMP SMSF brand.

It would appear that the step into the SMSF space has been an expensive mistake. The AMP SMSF business model is not profitable (AMP results FY14) and AMP is now losing clients.

It may be time to make some tough decisions at AMP headquarters.

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]]> Bewildered Industry Observer (SMSF Specialist Adviser) Thu, 07 May 2015 14:45:24 +1000