Managed account market in Australia shows steady growth
The total funds under management (FUM) held in managed accounts is expected to exceed $31 billion as the managed account market in Australia is substantial and growing quickly, the Institute of Managed Account Professionals (IMAP) said.
The 2016 study showed a breakdown of various types of managed accounts, with separately managed accounts (SMAs) accounting for $8.8 billion, managed discretionary accounts (MDA) amounting to $10.2 billion and other, including individually managed accounts (IMA), reaching $11.9 billion.
According to IMAP, this represented around a $13 billion growth in FUM comparing year-on-year.
Also, the managed accounts already proved to be a significant part of the retail financial services market with an equivalent of around five per cent of all investment assets held on platforms.
IMAP stressed that the growth in the inflow to managed accounts services was largely in platform based services rather than in "client own name" services, which showed the extent to which financial planners and advisers had adopted managed accounts as a way of delivering their overall advice services.
IMAP also noted that the inflow to managed accounts services had been strong since 2015 and was expected to continue to show strong growth this year.
Chair of IMAP, Toby Potter, said: "Managed accounts have been growing rapidly. However, because they can be SMAs, or MDAs or various other legal structures, it's been hard to be sure just how much is managed this way".
"We've surveyed almost all the organisations who have a managed account service and we estimate the investment pool is now over $30 billion."
AUTHOR
Oksana Patron
Recommended for you
The $673 billion global investment manager has appointed a former Zenith sales head as it seeks to expand its reach in the Australian wealth management market.
Fund managers may be operating in a squeezed environment, but a salary guide shows they are willing to pay up for specialist talent to diversify their fund range.
Reach Alternative Investments has entered into a strategic partnership with Russell Investments to bolster its wholesale private markets offering for financial advisers and investors.
Boutique investment consulting and research house Genium Investment Partners has announced a senior appointment to drive further growth in its research ratings business.
