Managed accounts growth led by MDAs
Managed accounts funds under management (FUM) increased by 8.79 per cent to $47.7 billion at 31 July 2017 with the largest growth in managed discretionary accounts (MDAs), according to the Institute of Managed Account Professionals (IMAP).
IMAP’s latest managed accounts FUM census found the MDA growth over the six months to 31 July increased by 37.14 per cent ($6.21 billion) to $22.93 billion.
This was followed by an increase of 16.01 per cent ($1.98 billion) from separately managed accounts (SMAs) to $14.34 billion, and other services by 5.94 per cent to $10.7 billion.
IMAP chair, Toby Potter, said $4.1 billion of the increase came from companies who had been added to the census, and that over half of the increase was organic growth as advisers increasingly viewed managed account services as their preferred service model for a certain client segment.
“Thirty-seven companies participated in the latest managed accounts FUM census ranging from the very large (major platforms and banks) and smaller MDA providers,” Potter said.
“With several organisations moving service offerings into the larger platforms, and new entrants, this continues to be a very dynamic market.
“IMAP has analysed the increase in Funds under management for managed accounts using the S&P ASX 200 market movement index over the past six months of one per cent as an indicator, and $0.39 billion of the growth is likely the result of market movement.”
Potter said that this meant $4.4 billion of the FUM growth came from existing participants who grew their managed accounts businesses, compared with $2.5 billion in the previous six month period.
Recommended for you
GQG Partners has marked its fifth consecutive month of outflows as its AI concerns lead to fund underperformance but overall funds under management increased to US$166.1 billion.
Apostle Funds Management is actively pursuing further partnerships in Asia and Europe but finding a suitable manager is a “needle in a haystack”.
Nuveen has made its private real estate strategy available to Australian wholesale investors, democratising access to a typically institutional asset class.
VanEck is expanding its fixed income range with a new ETF this week to complement its existing subordinated debt strategy which has received $1 billion in inflows this year.
