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
Financial advisers will have access to private equity investments run by WTW for the first time as it launches a pooled fund to provide savers with access to traditionally institutional assets.
Three solutions providers – Betashares, Franklin Templeton and Russell Investments – have all launched new ETF products, including one range which uses gearing to help build wealth.
Platinum Asset Management chief executive, Jeff Peters, has shared a progress update on its newly announced turnaround strategy.
There is a role for advisers using inflation-linked bonds in portfolios, according to AXA IM, as the possibility of higher inflation necessitating another US rate hike is not out of consideration.
