Strong inflows & solid market performance underpinned growth in total Funds under Management in Managed Account services during the 2nd half of 2021
IMAP (The Institute of Managed Account Professionals Ltd) in conjunction with Milliman has released the latest data in its 6 monthly Managed Accounts FUM Census long term series.
As at 31 Dec 2021 Funds Under Management (FUM) in Managed Accounts stood at $131.65 bn, an increase of $21.06 bn in the 6 months from 30 June 2021 FUM total of $111.01 bn.
Toby Potter Chair of IMAP said “The growth rate in managed accounts is accelerating to the point where it is approaching 40% per year.
This growth is up from approximately 30% p.a as recently as June 2021.
The increased use of managed accounts – MDA and SMA - is a good thing not just for the value added in dollar terms, but because it is achieved through personal advice provided to clients.
The value which the systematic approach of managed accounts embodies is even more critical in the worldwide crisis we are currently facing.”
investment markets experienced higher volatility and grew steadily in the second half of 2021
Victor Huang, Milliman’s Practice Leader, Australia advised that “The investment markets grew steadily in the last half of 2021, with the value of the ASX / S&P 200 Accumulation Index experiencing a modest 3.8% over the period, (compared with the 12.9% increase in the prior 6 months).
The level of volatility was definitely higher in the current period, requiring skillful portfolio management for both the short and longer term.
The FUM results split between types of managed accounts is as follows:
|
Managed Account Category |
30 Dec 2021 |
Incr / Decr $ ($ billions) Dec 2020 to Dec 2021 |
Incr / Decr |
30 June 2021 |
31 Dec 2020 ($ billions) |
|
SMA / MIS |
$68.19 |
$23.10 |
51% |
$51.09 |
$45.09 |
|
MDA services |
$52.76 |
$12.90 |
32% |
$48.01 |
$39.86 |
|
Other services |
$10.70 |
$0.45 |
4% |
$11.91 |
$10.25 |
|
Total |
$131.65 |
$36.45 |
38% |
$111.01 |
$95.20 |
“Excellent support for the Census from the managed account sector includes one new census participant, adding up to a total of 49 companies.
I thank everyone for their efforts in responding to provide a reliable, informative sector data-set“, said Toby Potter. “This is a good sign of a healthy market sector”.
Participants range from the large platforms, banks, and MDA Providers through to individual licensees.
Growth in Managed Accounts Funds under Management from 2015 to December 2021 ($ billions)
Category Type of Managed Accounts Chart showing FUM growth ($ billions) June 2017 to December 2021
IMAP wishes to expressly thank all census contributors - a number of whom are listed below (by permission):
|
Accordius |
Lifespan Financial Planning |
|
AMP |
Lighthouse Capital |
|
BT Panorama |
Macquarie |
|
Cameron Harrison Private |
Mainstream Group |
|
Colonial First State |
Mason Stevens |
|
DNR Capital |
Marcus Today |
|
EC Pohl & Co |
MLC Asset Management |
|
Elston |
Netwealth |
|
FiiG Securities |
Praemium (incl. Powerwrap data) |
|
Fortnum Private Wealth |
Ralton Asset Management |
|
HUB 24 (incl Xplore Wealth data) |
Sentinel Group |
|
Implemented Portfolios |
Watershed |
|
IOOF |
WealthO2 |
About IMAP https://imap.asn.au
The Institute of Managed Account Professionals (IMAP) is the only industry body for advisers, managers, providers and other businesses actively involved in offering or supporting Managed Accounts and was founded in 2003.
IMAP provides its subscribers, readers and supporters with:
- Access to information on the latest developments in managed account services
- Education, and training appropriate to professionals at all levels
- Representation as the voice of the managed account industry to represent its interests to regulators
- Networking opportunities for advisers and licensees interested or involved in managed accounts
About Milliman https://au.milliman.com/en/
Milliman is a global actuarial firm and among the world’s largest providers of independent actuarial and related products and services.
In Australia, Milliman specialises in integrated retirement solutions—providing data analytics, financial modelling software and financial risk management services.
Founded in 1947 Milliman is a global firm of more than 3,800 employees operating from 60 offices across the Americas, Europe, Africa, Asia, Australia and the Middle East.
For further information about Milliman’s own SmartShield™ Managed Account solutions are available now. Find out more at https://advice.milliman.com/en/
Contact Details
|
Milliman |
IMAP |
|
Victor Huang, Practice Leader, Australia T: 02 8090 9100 M: 0433 383 580 |
Toby Potter, Chair M: 0414 443 236 Craig Dewhurst, IMAP Data Manager T: 02 8003 5077 |
© 2022 Reproduction Rights: This data is Copyright Institute of Managed Account Professionals Ltd (IMAP).
Use of this data in publications is subject to written permission from IMAP