Funds under management (FUM) in managed accounts rose by $15.4 billion to reach $95.2 billion, according to the latest census figures from the Institute of Managed Account Professionals (IMAP) and Milliman.
Assets rose from $79.7 billion at the end of June to $95.2 billion at the end of December. The proportion of this which came from net inflows was $6.9 billion while the remainder came from positive stockmarket performance.
Some $45 billion was in separately managed accounts (SMA) or managed investment scheme (MIS), an increase of 54%, and $39.8 billion was from managed discretionary accounts (MDA) while the remainder was in ‘other services’.
The census reflected on the consolidation of the sector through acquisition, advice groups moving between providers and the focus on innovation from providers and managers to develop greater capability.
Toby Potter, chair of IMAP, said: “The significant jump in the SMA/MIS category reflects a one-off legal transition of a large platform’s FUM from the ‘other services’ category as it changed the legal structure under which it operated, in addition to organic and market growth.”
Victor Huang, Milliman’s principal and head of investment solutions Asia-Pacific, said: “The investment markets for the second half of 2020 were significantly more positive than the first half. The value of the ASX / S&P 200 Accumulation Index rose 13.2% over the period, (compared with the decrease of 10.42% decrease in the prior six months). This will have materially advanced the value of holdings as Australian equities make up a significant share of assets in both direct and managed fund form”.
