In the six months to 31 July 2017, managed account FUM grew by $8.88 billion, the company found, and now sits at $47.97 billion.
The addition of new MDA providers to the IMAP FUM census accounted for around $4.1 billion of this, with the remaining $4.7 billion attributed to the increased adoption of MDA, SMA and other managed account strategies by financial advisers.
“This is a growth rate of approximately 25 per cent per annum, and this is before several of the large platforms have begun to properly implement the managed account capability they are just now developing,” said IMAP chair Toby Potter.
“Taking out the new participants from the MDA data gives annual growth rates of 25-30 per cent for SMA and MDA.”
Earlier in August, Mr Potter told guests at the InvestorDaily Wraps, Platforms and Masterfunds conference that the increased growth of the managed account sector would negatively affect fund managers and stock brokers.
