AMP Seen As Leading Provider as SMSF Industry Grows

A recent Morgan Stanley report has placed financial company AMP as a leading smsf wealth manager that can best served retirement assets. 

Over the last few years, the industry has seen a shift in investments to SMSF from traditional or retail funds as accountants tell their clients that there is more chance for growth, flexibility and good returns with it.  

Research shows, that more than 50 percent of accountants in the country monitor about 10 percent superannuation funds among their clients. The rest invests their assets in term deposits, securities and cash or savings deposits. 

Some $10 billion a year is being invested to SMSFs and bigger banks have been willing to support this. Industry experts project that the recent venture between AMP and SuperIQ has put AMP in a solid position as a leading provider and will reap good earnings from this deal. 

Its rivals, however, remain skeptic. 

David Storm, who heads the IOOF’s Australian Executor Trustees, said that AMP’s lack of distribution or reach will hinder them from dominating other providers. Andrew Peters, a financial adviser from Semaphore Private said that people are essentially placing their bets on just two places. 

But Morgan Stanley analyst Daniel Toohey reiterated that SMSFs will continue to rise to become a new retail segment where investors have more control of their retirement savings. 

Toohey also said that this is going to be a game-changer, especially when new technologies make transactions easier to manage. 

A spokesperson for the AMP said that there is an attractive sector with SMSF investors. The system, however, is still fragmented. The company also anticipates changes to how wealth management is taking shape.

Tagged AMP, Andrew Peters, Daniel Toohey, David Storm, Morgan Stanley, SMSF