The Institute of Managed Account Professionals Ltd (IMAP), in conjunction with Milliman, has released the latest data in its six-monthly Managed Accounts FUM Census series. The data shows managed accounts grew $9.26 billion for first six months of 2019 as net inflows doubled.
As at 30 June 2019, funds under management (FUM) in managed accounts stood at $71.383 billion, an increase of $9.263 billion on the 31 December 2018 FUM total of $62.12 billion.
The net funds inflow for 31 December 2018 to 30 June 2019 has doubled on the previous six-month period to $4.43 billion, or 7 per cent increase on total FUM.
“The FUM census results suggest that investors are working closely with and have confidence in their financial advisers, evidenced by the steady inflows of new funds into managed account arrangements,” Toby Potter, chair of IMAP said.
Victor Huang, Milliman’s head of capital markets – Australia, noted that the main features of investment markets for the first half of 2019 were improved confidence and volatility.
“The value of the ASX/S&P 200 Accumulation Index increased by 19.73 per cent over the six-month period, compared with a 6.83 per cent decrease in the six months prior,” he said.
While the MDA category remains the largest and is growing, platform-based SMAs are growing at a faster rate and closing in on the MDA total.
Forty-three companies participated in the latest Managed Accounts FUM Census.
“This census provides a good, representative picture of the managed account market,” Mr Potter said.
“Participants include the very large major platforms, banks, and MDA providers as well as individual licensees who largely operate their service internally.”