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
Bell Financial Group has appointed a chief investment officer who joins the firm from Clime Investment Management.
Private markets funds with “unattractive practices” could find themselves facing enforcement activity with ASIC chair Joe Longo stating he cannot rule it out in the future.
Despite ASIC concerns about private credit funds being accessed via the advised channel, there are questions regarding how high its usage actually is among financial advisers.
Challenger has looked to the superannuation industry for its appointment of a group chief investment officer, a newly-created role.
