Class Ltd has seen much slower growth in SMSFs using Class Super in the latest quarter.
Class Super accounts for the September 2018 quarter were up 2,638. This is the lowest of any September quarter since at least 2013/14 and the second lowest of any quarter over that period, after March 2014.
For comparison, SMSFs using Class Super were up 4,526 in the June 2018 quarter, and up 6,232 in the September 2017 quarter.
Class said these lower growth figures were anticipated. “Lodgment extensions made for a slow start in July and August with nearly half of the new customers for this quarter signing up in the month of September,” said Class Ltd in its Quarterly Shareholder Update.
“Over 3,800 new SMSF accounts were added for the quarter. The impact of ~1,200 funds suspended by AMP delivered a net increase in Class Super accounts of 2,638, taking the total SMSFs to 166,102 for the period.”
Figures aren’t yet released for the number of SMSFs as at 30 September 2018. The most recent statistics from APRA – which are for June 2018 – showed there were 596,225 SMSFs. Which would indicate a market share for Class Super of under 28%. In August the company announced that it had an SMSF market share of approximately 27%.
Class said AMP is continuing the process of migrating accounts off of Class – as at 30 September 2018 they had around 7,100 SMSFs still on Class.
“Excluding AMP, our retention rate remains strong at 99.6%,” said Class.
“An increase in customer sign-ups late in the period provides momentum heading into the December quarter. SMSFs to be loaded by those sign-ups, along with the launch of our ‘Do More’ sales campaign, are expected to see a repeat of the success we saw in the December quarter last year.”
Class Super accounts were up 7,131 in the December 2017 quarter.
“Now that the more stringent caps, limits and event-based reporting (TBAR) are ‘business as usual’, we expect the ongoing pressures will accelerate the adoption of Class Super as practices seek efficiency.”
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