Managed accounts were continuing their rise and rise in Australia late last year and before the current market volatility, with the latest Institute of Managed Accounts Professionals (IMAP) and Milliman showing they grew by $7.9 billion in the last six months of 2019.
The IMAP census of managed accounts showed that as of 31 December, last year, funds under management (FUM) in managed accounts stood at $79.29 billion – an increase of $7.9 billion over the figure for 30 June, last year, when FUM stood at $71.383 billion.
Commenting on the latest data, IMPAP chairman, Toby Potter said the census suggested that investors were working closely with and had confidence in their financial advisers, evidenced by the steady inflows of new funds into managed account arrangement.
Milliman head of capital markets – Australia, Victor Huang, said the main features of investment markets for the second half of 2019 were growth and continued volatility.
Potter said that a continuing trend was that platform-based separately managed accounts (SMAs) were growing at a faster rate and closing in on the numbers of managed discretionary accounts (MDAs).
“Managed account growth continues to outstrip growth in platform FUA which suggests that most growth is coming from advisers recommending managed accounts to existing clients,” he said.