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AMP has quietly cornered a big slice of the Australian SMSF market

Christopher Furlong/Getty Images

AMP, the big financial services group, is now the biggest player in providing services to self managed superannuation funds (SMSF).

Using a combination of its own brand and a string of others, AMP has stitched together a 7% slice of the SMSF market, the largest segment of Australia’s $2 trillion plus in retirement funds.

According to details found in AMP’s full year results today, the financial service group accelerated this growth via acquisitions, including SuperIQ, SuperCorp and Just Super.

In the year to December, AMP increased self managed super funds under administration by 668 to 16,130, with assets up 5.3% to $18.8 billion.

Self managed funds, representing about 29% of retirement assets, are largest investors in the Australian share market, owning about 16% of local equities because of attractive tax effective franked dividends.

Overall, AMP provides about 38,000 SMSFs with administration and software services — about 7% of the self managed market in terms of the number of funds.

There are 1.07 million SMSF members managing 562,000 funds, according to numbers from the Australian Tax Office. Hasan Tevfik, an analyst at Credit Suisse, estimates these funds control $576 billion of assets.

AMP’s SMSF revenue is reported as part of “Other” on the wealth management area of its books. The SMSF business contributed $23 million last year, an increase from $19 million the year before.

“As SuperConcepts continues to grow its fund numbers and market share through organic growth and acquisitions, it is also expected to benefit from scale and efficiency,” AMP says in its annual accounts.

The brands AMP operates under includes Multiport, Cavendish, SuperIQ and YourSMSF.

There’s also a tie up with the AMP Bank which makes property loans to self managed funds.

And AMP lists 207 advisers for the SMSF business.

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