IMAP Census of Managed Account FUM in conjunction with Milliman reports that managed accounts FUM reached $194.8 bn as at 31 December 2023. 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. In the 6 months to 31 December 2023 balance date, Funds Under Management (FUM) in Managed Accounts increased by 20.47% to $194.85 bn (Note: on an annual basis this is a $50.3 bn increase on 31 December 2022’s figure of $144.5 bn). Toby Potter - Chair of IMAP said, “Strong inflows of over $15 bn were reported for the last half of 2023. The widespread adoption of managed accounts by licensees, their advisers, and by their clients is creating efficiencies in advice practices, and benefitting from professional portfolio management and the ability to manage diversified portfolios more effectively. Victor Huang, Milliman’s Practice Leader, Australia advised that “The investment markets have recorded improved growth in the second half of 2023 with a 7.6% increase in the value of the ASX / S&P 200 Accumulation Index, giving an annual growth rate of 12.11% in 2023" "The subsiding inflation data, receding recession risk, along with the tech sector growth were key drivers for the strong equity performance and provides a positive platform for growth in 2024. Concerns around service inflation remaining elevated and geopolitical uncertainty around the US election continue to be potential headwinds” Huang adds The FUM Census results split between types of managed accounts is as follows: Managed Account Category 31 December 2023 ($ billions) Incr / Decr ($ billions) Dec. 2022 to Dec. 2023 (one year) Incr / Decr Percentage% Dec 2022 to Dec 2023 (one year) 30 June 2023 ($ billions) 31 Dec 2022 ($ billions) SMA / MIS $108.82 $28.21 35.0% $94.90 $80.61 MDA services $61.64 $ 11.57 23.1% $50.88 $50.07 Other services $24.39 $ 10.54 76.1% $15.96 $13.85 Total $194.85 $50.32 34.8% $161.74 $144.53 “The Platform providers’ expansive use of SMAs as a vehicle to service the adviser/licensee market help drive FUM growth. Managed discretionary accounts (MDAs) are continuing to grow too helped by the tailoring, efficient implementation, & operation of MDA programs” said Potter. “The FUM Census collected data from 46 large & smaller organisations with varied offerings, which adds up to a healthy competitive market with a broad range of offerings to meet differing needs from both client investors and advisers” says Potter Chart One – Annual Growth in Managed Accounts (Funds under Management) from December 2016 to $194.85 bn in December 2023 Chart Two - Managed Accounts FUM growth annually ($ billions) by Category from December 2018 to December 2023 SMA MDA OTHER IMAP wishes to expressly thank all contributors to the IMAP FUM Census - a number of whom are listed below (by permission): Accordius Implemented Portfolios North (AMP) Insignia Financial BT Panorama Lifespan Financial Planning Cameron Harrison Private Lighthouse Capital Clime Asset Management Macquarie DASH APEX Group DNR Capital Mason Stevens EC Pohl & Co MLC Asset Management Elston Netwealth FiiG Securities Park Street Group Fortnum Private Wealth Praemium HUB24 Shaw and Partners Wilson Advisory 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://www.milliman.com/en Milliman is among the world’s largest providers of actuarial, risk management, and related technology and data solutions. Our consulting and advanced analytics capabilities encompass healthcare, property and casualty insurance, life insurance and financial services, and employee benefits. The firm serves the full spectrum of business, finance, government, union, education, and nonprofit organizations. Founded in 1947, Milliman today has offices in principal cities worldwide, covering markets in North America, Latin America, Europe, Asia and the Pacific, the Middle East, and Africa. For further information about Milliman’s SmartShield™ Managed Account solutions visit https://advice.milliman.com/en/ Download PDF of FUM Census Report The investment markets have recorded steady growth in the first half of 2023 Victor Huang, Milliman’s Practice Leader, Australia advised that ““The investment markets have recorded steady growth in the first half of 2023 with a 4.51% increase in the value of the ASX / S&P 200 Accumulation Index. Volatility has trended downwards in the first half of 2023 for the US and Aussie markets, with Europe peaking sharply at the end of the first quarter before also declining. The uncertainty around inflation and growth may continue to fuel uncertainty for the remainder of the year” Huang adds. ManagedAccount Category 30 June 2023 ($ bn) $bn Incr/DecrJun 2022 - Jun 2023 (one year) % Incr / Decr Jun 2022 - Jun 2023 (one year) 31 Decem 2022 ($ bn) 30 June2022 ($ bn) SMA / MIS $94.90 $24.34 34% $80.61 $70.56 MDA services * $50.88 $ 0.24 0% $50.07 $50.64 Other services $15.96 $ 1.35 9% $13.85 $14.61 Total $161.74 $25.94 19.1% $144.53 $135.80 The FUM results split between types of managed accounts is as follows: Managed Account Category 30 June 2023 “The market’s Platform providers’ successful use of SMAs as a vehicle to service the adviser/licensee market continues to drive FUM growth in this sector“, said Toby Potter. “The FUM Census collected data from 48 organisations with participants ranging from the large platforms, and MDA service providers through to individual licensees, “adds Potter IMAP wishes to expressly thank all census contributors - a number of whom are listed below (by permission): Accordius Implemented Portfolios North (AMP) Insignia Financial BT Panorama Lifespan Financial Planning Cameron Harrison Private Lighthouse Capital Clime Asset Management Macquarie DASH APEX Group DNR Capital Mason Stevens EC Pohl & Co MLC Asset Management Elston Netwealth FiiG Securities Park Street Group Fortnum Private Wealth Praemium HUB24 Shaw and Partners 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://www.milliman.com/en Milliman is among the world’s largest providers of actuarial, risk management, and related technology and data solutions. Our consulting and advanced analytics capabilities encompass healthcare, property and casualty insurance, life insurance and financial services, and employee benefits. With more than 4,600 employees and revenue of US$1.38 billion in 2021, the firm serves the full spectrum of business, financial, government, union, education, and nonprofit organizations. Founded in 1947, Milliman today has offices in principal cities worldwide, covering markets in North America, Latin America, Europe, Asia and the Pacific, the Middle East, and Africa. For further information about Milliman’s SmartShield™ Managed Account solutions visit https://advice.milliman.com/en/ Contact Details Toby Potter, IMAP Chair M: 0414 443 236E: toby.potter@imap.asn.au Victor Huang, Practice Leader, Milliman Australia T: 02 8090 9100M: 0433 383 580E: victor.huang@milliman.com Contact Details Milliman IMAP Victor Huang, Practice Leader, Australia T: 02 8090 9100 M: 0433 383 580 E: victor.huang@milliman.com Toby Potter, Chair M: 0414 443 236 E: toby.potter@imap.asn.au Craig Dewhurst, IMAP Data Manager T: 02 8003 5077 E: craig.dewhurst@imap.asn.au © 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