Funds under management in managed accounts reached $95.2 billion by December 2020 according to the latest figures from IMAP, and are likely to cross the $100 billion dollar mark around the middle of the year if investment markets remain on track.
Figures from the managed account FUM Census, which IMAP publish in conjunction with actuary Milliman, show the combined FUM rose $15.49 billion from $79.71 in the second half of the year after a combined net inflow of $6.97 billion and a 13.2 per cent increase in the ASX/S&P 200 accumulation index.
According to IMAP CEO Toby Potter the total managed account market in Australia will likely cross the $100 billion threshold sometime around the middle of the year, if it hasn’t happened already.
“At the level of inflow we were seeing in the second half of 2020 and market returns there’s no reason to expect that we aren’t already in excess of $100 billion,” Potter tells Professional Planner. “We are seeing considerable focus on innovation from providers and managers to continue to develop greater capability.”
Separately managed accounts continued to propel the sector forward with a 54 per cent increase to $45.09 billion, while managed discretionary accounts added 28 per cent to sit at $39.86 billion. ‘Other services’ decreased 46 per cent to $10.25 billion.
“The significant jump in the SMA/MIS category reflects a one-off legal transition of a large platform’s FUM from the ‘Other Services’ category as it changed the legal structure under which it operated, in addition to organic and market growth,” Potter noted.