Managed accounts funds reached a new high of $71.383 billion (AUD) at 30 June 2019 after an increase of $9.263 billion in the six months leading up to mid-year, according to figures released by actuary Milliman and the Institute of Managed Accounts Professionals (IMAP).
The net funds inflow for the period 30 December 2018 to June 30 2019 was $4.43 billion, with the remaining $4.833 attributable to market value increases. The $4.43 billion inflow represents a 7 per cent increase of total funds under management, which is roughly double the increase for the previous six-month period.
According to IMAP chair, Toby Potter, the steady inflow of funds suggest investors are working closely with their advisers and have faith in managed account solutions.
“We’d expect the growth that we’ve seen over the last six months to continue as advisers recognise the benefits for themselves and their clients of systematic portfolio management,” Potter says.
Of the $71.383 billion invested in managed accounts, $29.24 billion is within managed discretionary accounts (MDAs) and $25.56 billion is within separately managed accounts (SMAs). $16.58 billion is invested in other services, according to the data.
The SMA market is surging; $4.41 billion of the $9.263 billion increase in the period is attributable to SMAs, while only $2.72 billion is linked to MDAs.
“Although the MDA category remains the largest and is growing, platform-based SMAs are growing at a faster rate and closing in on the MDA total,” Potter notes.
Forty-three companies participated in the managed accounts FUM census, including “very large major platforms, banks, and MDA Providers as well as individual licensees who largely operate their service internally,” according to Potter. Among the participating entities were AMP, BT Panorama, Colonial First State, IOOF, Macquarie, NAB, Netwealth and Praemium.
“This census provides a good, representative picture of the Managed Account market,” Potter says.