Is AMP still the right owner for SuperConcepts?

Mike Taylor

Managing Editor/Publisher, Financial Newswire

17 February 2023

AMP Limited is not done with exiting some of its business units, declaring that it will “continue to review [its] portfolio of assets to ensure AMP is the right owner”.

The declaration, contained in the company’s investor briefing materials, comes amid increasing signs that AMP may be positioning to exit its self-managed superannuation funds administration business, SuperConcepts.

The speculation around the future of SuperConcepts appears to have been underscored by the absence of any direct reference to the business in the company’s full-year results.

For AMP, its Australian Wealth Management division includes just three businesses – Platforms, Master Trust and Advice

It also comes against the background of AMP pointing to having halved its financial advice losses to $68 million, while acknowledging that its advice revenue of $56 million had been supported by higher licensee fees from new commercial terms.

However, the means by which AMP is implementing its strategy has been made clear by the fact that the 1,867 aligned advisers on its books in the first half of 2020 has now been reduced to 924, while the number of aligned practices has reduced over the same period from 800 to 366.

Perhaps more importantly, the AMP analysis shows that notwithstanding the decrease in aligned advisers and aligned practices it has managed to drive up the key metric of revenue per adviser to around $600,000.

The company, which last year was flagging the possibility of achieving break-even this year, is now offering guidance simply stating that it will be pursuing further net profit after tax improvements from reductions in controllable costs.

Having reduced its aligned adviser numbers, AMP is looking to continue its push towards attracting more independent financial advisers to its North Platform nominating an objecting to “retain and grow adviser base, particularly IFAs, using MyNorth through uplifts to sales, service and functionality and expanded investment options