AMP looks to smaller SMSF acquisitions
Page 1 of 1
Darin Tyson-Chan is a journalist with InvestorDaily, a Morningstar publication.
AMP Limited (AMP) is looking to expand its market share of the self-managed superannuation fund (SMSF) sector through smaller acquisition opportunities than it has executed in the past few years.
The financial services giant's recent business activity has seen it take ownership of specialist SMSF businesses such as Multiport and SMSF Advice, through the Axa Asia Pacific merger, and Cavendish Superannuation through a separate outright purchase.
"We recently did the Cavendish acquisition and we may do some more in that space as we try to build scale reasonably quickly to take advantage of the technology footprint we've got there," AMP chief executive Craig Dunn said.
"It would be at the much smaller end of the scale with a particular focus like that."
AMP's current situation sees its SMSF presence predominantly in the administration and accounts licensing space through a variety of businesses.
However, Dunn said the financial services firm had not targeted any other specific areas through which it could increase its SMSF market presence.
"It is obviously a rapidly growing space and I do think it's a space where you're going to see more innovation and more change than we've seen in the past," he said.
"So there may be other opportunities to bring in other services and other capabilities around that sector.
"We're quite open minded about where that might go and we don't have any set strategies and we won't be talking about betting the farm or making big acquisitions, but we're in that market, we're dedicated to it, it's changing and we're learning more about it and if there are opportunities, we'll be prepared to take advantage of them."
He pointed out a large number of SMSF portfolios were still invested in direct equities, property and cash, and research had revealed trustees would appreciate more investment advice to provide greater diversity and that it was an area of which AMP could take advantage.