Managed account funds shows steady growth
According to the Managed Accounts FUM Census series, funds under management (FUM) in managed accounts have grown by nine per cent to $5.389 billion in six months to 30 June, 2018.
The study, realised by the Institute of Managed Accounts Professionals (IMAP) and Milliman, found that for the 12 months year on year period represented an annual growth rate of 30 per cent or $14.46 billion.
IMAP’s chair, Toby Potter, noted that over half of the increase is the result of organic growth.
“We estimate that $2.99 billion of the increase is due to inflows of new funds from existing participants growing their managed accounts business, compared with $3.37 billion in previous six months period,” he said.
“The total growth for the past 12 months from new funds inflow is $6.36 billion for 2017/18 (this excludes the market growth).”
Also, Australia’s estimated 45 per cent or $2.4 billion of the growth could be attributed to steady growth in investment markets with the value of the Australian Securities Exchange (ASX) / S&P 200 Accumulation Index increasing by 4.23 per cent over the six month period.
“This compares with a 8.37% or $4 billion market growth factor in the previous 6 months and reflects the total market conditions over that time period” Milliman’s practice leader, Wade Matterson said.
To compare the growth rate of managed accounts with other financial services in the retail market, IMAP compared it with the Master fund data, provided by Strategic Insight, over the same period
Strategic Insight’s statistics from their Masterfunds, Platforms and Wraps Survey at 31 March 2018 showed that Masterfunds had $809.3bn of FUM with annual net inflows of $20.6 bn in the previous 12 months.
|
Managed Account Category |
30 June 2018 ($ billions) |
Incr / Decr $ ($ billions) Dec 2017 to June 2018 |
Incr / Decr |
31 Dec 2017 ($ billions) |
30 June 2017 ($ billions) |
|
SMA / MIS |
$20.55 |
$3.51 |
21% |
$17.04 |
$13.90 |
|
MDA services |
$27.34 |
$1.87 |
7% |
$25.47 |
$23.37 |
|
Other services |
$14.54 |
$0.00 |
0% |
$14.54 |
$10.70 |
|
Total |
$62.43 |
$5.38 |
9% |
$57.05 |
$47.97 |
AUTHOR
Oksana Patron
Recommended for you
As AFSLs endeavour to meet their breach reporting obligations, a legal expert has emphasised why robust documentation will prove fruitful, particularly in the face of potential regulatory investigations.
Betashares has named the top Australian suburbs with the highest spare cash flow, shining a light on where financial advisers could eye out potential clients.
A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 for a client.
Estimates for the calendar year 2024 put the advice industry on track for a loss in adviser numbers as exits offset gains from new entrants.
