AMP has made another move into the self-managed superannuation fund (SMSF) market, with one of its subsidiaries picking up faltering administration business Tranzact.
Super IQ, an SMSF administration company partially-owned by AMP, purchased Tranzact Financial Services (TFS) this week following a turbulent few months for the start-up.
Tranzact suffered significant losses this year due to "competitive pressures", it said in an ASX announcement.
It was valued at $2.15 million at 30 June 2013, but sold for around $1.35 million, which means it will incur a one-time write-off of $800,000 for the 2014 financial year.
"The significant loss of funds in recent months was a major factor in the sale proceeds being lower than the directors' valuation of the business in the Annual Report," Tranzact said.
Super IQ said it will begin transitioning Tranzact clients immediately.
"We have become quite experienced at migrating funds, trustees and advisers to our offering, having now completed a number of acquisitions like this one," said SuperIQ General Manager Peter Lalor.
"Acquisitions continue to be an important part of our growth strategy and we are constantly looking for more, or in discussion with potential sellers," he added.
