ING Super Concepts’ agreement to administer an extra 600 self-managed superannuants from the disbanded Colonial First State YourChoice business will do little for its market share in a industry that is “highly fragmented” despite its stratospheric growth forecasts, admits general manager Paul May.
Assuming they all opt in, the imminent transfer of the YourChoice clients (whose existing fees will be grandfathered by ING for the first year) will take Super Concepts’ total to approximately 4100.
Yet May’s business is still one of the biggest handful of players in an industry supporting approximately 380,000 SMSFs Australia-wide. May said Super Concepts would look to acquire or take over more SMSF administration, in a market where “specialisation” is a watchword and many bit-players are understood to be keen sellers.
It is understood the Tranzact purchase of a controlling interest in administrator of about 1000 SMSFs, Total Super, was done earlier this year on a multiple of about one times annual revenue.
The prize for an administrator who can establish any sort of domination in the SMSF market is huge. Deloitte Trowbridge estimates that SMSFs, already the largest super sector with 26 per cent of the pension market, will grow to around $1.5 trillion under management by 2021.
