AMP will be looking to attract more sections of the self-managed superannuation fund (SMSF) market through its acquisition of two business arms from the Cavendish Group that will give the company a three-pronged proposition in the industry.
The financial services organisation has stated its intention to run Cavendish, Multiport and Super IQ as three separate brands to achieve this purpose.
"We think that having multiple brands in administration with different services will enable us to appeal to more SMSF investors and allow us to tailor services through our distribution channels to meet our clients' needs," AMP SMSF director Paul Sainsbury told InvestorDaily.
"We think there are plenty of opportunities for multiple brands to be successful in the market and that is what was behind the acquisition of Cavendish," he added.
"We're also attracted to the administration component of SMSFs because technology and innovation is actually making it easier for customers to set up self-managed super funds and to administer them over their life."
"We think technology will also improve the economics of SMSF admin and as a result of that we think it'll help AMP's market share and revenue growth."
Sainsbury said AMP had no intention of changing the Cavendish business from a geographical perspective either.
"We think there is an attractive skills base for self-managed super administration in Adelaide. In fact, Adelaide University runs quite a significant SMSF accreditation program which Cavendish supports so we find Adelaide an attractive market for self-managed super admin," he said.
AMP will soon be conducting an extensive review of the operations of its various SMSF administration arms to determine if any streamlining of processes can be achieved.
According to Sainsbury, the acquisition of Cavendish has been preformed to compliment all of the activities across the AMP group.
"SMSF admin is really the accounting, governance, and compliance of a self-managed super fund and the underlying investment vehicles into which SMSF investors put those assets, some of which are through retail products and in other cases are direct."
"AMP has a range of services that are available to be used by SMSF investors so we see it as a much more complimentary strategy," he said.
