Managed accounts’ FUM rises to $161bn
Data from the Institute of Managed Account Professionals (IMAP) has recorded a 9.8 per cent rise in managed accounts’ funds under management (FUM) to $161.9 billion in the six months to 30 June 2023.
The nearly 10 per cent increase was from an FUM of $144.5 billion in December 2022, a rise of $17.2 billion.
According to the FUM census by the Institute of Managed Account Professionals (IMAP) and Milliman, strong inflows of more than $11 billion were reported in the six-month time period.
“These results will be welcomed by both the end clients and their financial advisers, as well as by the investment committees, their asset advisers and investment managers all working to assist the clients work towards achieving their financial goals,” said Toby Potter, chair of IMAP.
Victor Huang, Milliman’s practice leader for Australia, observed steady growth from investment markets in H1 2023, with a 4.5 per cent increase in the value of the ASX 200 Accumulation index.
He added: “Volatility has trended downwards in the first half of 2023 for the US and Aussie markets, with Europe peaking sharply at the end of the first quarter before also declining.
“The uncertainty around inflation and growth may continue to fuel uncertainty for the remainder of the year.”
Potter attributed the platform providers’ successful use of separately managed accounts (SMAs) to service the adviser/licensee market as a key driver of FUM growth.
From June 2022 to June 2023, SMAs saw a 34 per cent growth ($24.3 billion) from $70.6 billion in the previous year to $94.9 billion.
During the same 12-month period, managed discretionary accounts (MDAs) reported a marginal rise from $50.6 billion to $50.9 billion.
The FUM census collects data from 48 organisations, with participants ranging from large platforms and MDA service providers through to individual licensees.