Accountancy group KPMG is to sell the superannuation administration business it launched in 1989 to the OneVue superannuation services group.
The move, for an undisclosed price, represents a significant change of course for KPMG’s superannuation operations.
“While it has historically formed part of the broader Australian KPMG network, changing market dynamics make it more suited for growth with a dedicated, specialist superannuation business,” said KPMG chief executive Gary Wingrove.
The super administration business was originally formed to service the superannuation advisory business by administering clients’ superannuation needs. It is now the fourth-largest super administration business in the country.
Created in 1989 for a major superannuation client, KPMG Superannuation Services was opened up to other funds as it became clear there was a gap in the market for the delivery of bespoke superannuation services – particularly more complex and sophisticated personalised fund administration, Mr Wingrove said.
KPMG Superannuation Services provides administration to about $2 billion in funds under management and most of its clients are largely services financial institutions and APRA-regulated superannuation funds. It has 47 staff who will be offered jobs by the purchaser when the deal is completed in April.
The business provides a full suite of superannuation administration and advisory services including allocation of contributions, maintenance of member records, calculating and processing of member benefits, dealing with member queries and more – through to preparation of annual reports and newsletters, delivery of member seminars, calculation of unit prices, handling complex member queries, KPMG said in a statement.
“KPMG Superannuation Services is a growing, profitable business in its own right, and one of the few remaining niche providers in a consolidating market,” Mr Wingrove said.
Despite the sale of the administration operation, KPMG will continue to run its superannuation advisory business which it sees as a growth operation.
It offers advice on a wide range of areas involving law, superannuation and employment-taxes specialists, as well as data-analytics specialists and dispute-resolution functions.
KPMG has entered into an agreement to sell only its superannuation administration business, which administers about $2 billion in funds under management.
KPMG Superannuation Services was established in 1989, initially for a single superannuation fund client. This was later expanded to other funds, and the business now services over 40,000 members.
OneVue, said that the acquisition will double its super related operation including funds under administration and super member administration revenues.
OneVue chief executive Connie Mckeage said: “Our first priority is to ensure the ongoing service delivery is maintained and enhanced for both OneVue and KPMG’s existing members. This acquisition increases OneVue’s current superannuation member capabilities by adding KPMG’s deep technical expertise in managing complex superannuation funds.”
“The combination of OneVue’s superannuation business and KPMG’s high quality business and experience across defined benefits funds in particular should also open up new opportunities for us in the market,” Ms Mckeage said.