Managed accounts break through $200bn FUM milestone
The managed account sector increased by $10.6 billion over the past six months, according to the Institute of Managed Account Professionals (IMAP).
In conjunction with Milliman, IMAP has released its six-monthly managed account funds under management (FUM) census data to 30 June 2024 from 46 organisations.
It reported that managed accounts’ FUM exceeded the $200 billion mark to reach $205.6 billion – representing a six-monthly rise of $10.6 billion. This was underpinned by new investment inflows of $14.9 billion.
The previous six-month period to 31 December 2023 also enjoyed strong inflows of $15 billion alongside positive market gains.
Overall, the managed account industry has experienced an annual growth of 27 per cent, or $43.9 billion, from 30 June 2023’s figure of $161.7 billion.
Commenting on the new data, IMAP chair Toby Potter said: “The managed account industry sector has reached a major milestone in breaking through to over $200 billion in funds under management using managed accounts.
“Strong inflows of $14.9 billion for the second half of 2024 added to the steady investment performance.”
Breaking it down by product type, separately managed accounts (SMAs) and managed investment schemes (MIS) had $129 billion, representing over 60 per cent of total FUM.
Managed discretionary accounts (MDAs) accounted for $52.4 billion, or 25.4 per cent of the market’s FUM, and other services totalled $24.2 billion.
According to Potter, MDAs have seen steady demand for the tailored portfolios they offer. Moreover, he cited the financial adviser and licensee market’s use of SMAs through platform providers as a stronger driver of overall FUM growth.
Victor Huang, practice leader at Milliman Australia, reflected on recent investment performance: “The investment markets have recorded steady growth in the first six months of calendar 2024 with a 4.2 per cent increase in the value of the ASX / S&P 200 Accumulation Index, giving an annual growth rate of 11.8 per cent increase from 1 July 2023 to 30 June 2024.
“The half year to 30 June 2024 has seen inflation fears start to recede, weak economic growth and market adaption to global risks. Equity performance has been positive with fixed income also doing well as interest rate expectations fell for the second half of 2024.”
Looking ahead, Huang expects continued high market volatility, in part due to the UK’s recent change of government and the upcoming US election in early November.
AUTHOR
Jasmine Siljic
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
