IMAP Census of Managed Account FUM in conjunction with Milliman reports that managed accounts FUM reached $205.58 bn as at 30 June 2024.
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 30 June 2024 balance date, Funds Under Management (FUM) in Managed Accounts increased to $205.58 bn, including new investment inflows of $14.9bn
(Note: this is a $43.88 bn or 27% annual increase on 30 June 2023’s figure of $161.7 bn).
Toby Potter - Chair of IMAP said, “The managed account industry sector has reached a major milestone in breaking through to over $200 billion in funds under management using managed accounts.
Strong inflows of $14.9bn for the 2nd half of 2024 added to the steady investment performance.
“Managed discretionary accounts (MDAs) are 25.4% of the market FUM, with steady demand for the tailored portfolios offered via MDAs.
Reported FUM for MDA programs is down for technical reasons due a previous participant no longer participating as a result of changed corporate policy in the Census”, said Potter.
The adviser/licensee market use of SMAs via Platform providers is still a strong driver of overall FUM growth.
There are now 8 organisations offering managed accounts with more than $10 bn in FUM.
Victor Huang, Milliman’s Practice Leader, Australia advised that “The investment markets have recorded steady growth in the first 6 months of calendar 2024 with a 4.2% increase in the value of the ASX / S&P 200 Accumulation Index, giving an annual growth rate of 11.8% increase from 1 July 2023 to 30 June 2024.
The half year to 30 June 2024 has seen inflation fears start to recede, weak economic growth and market adaption to global risks.
Equity performance has been positive with fixed income also doing well as interest rate expectations fell for the 2nd half 2024.“
The FUM Census results split between types of managed accounts is as follows:
|
Managed Account Category |
30 June 2024 |
Incr / Decr ($ billions) June 2023 to June 2024 |
Incr / Decr |
31 December 2023 |
30 June |
|
SMA / MIS |
$129.01 |
$34.11 |
35.9% |
$108.82 |
$94.90 |
|
MDA services |
$52.38 |
$ 1.50 |
2.9% |
$61.64 |
$50.88 |
|
Other services |
$24.19 |
$ 8.23 |
51.6% |
$24.39 |
$15.96 |
|
Total |
$205.58 |
$43.84 |
27.1% |
$194.85 |
$161.74 |
“Looking forward we expect a continued high level of volatility in the markets even if shocks and market eddies are likely to be less frequent. This is in part due to the UK change of government and the recent Democratic party upswing in the US elections contributing to a reduced likelihood of a Trump return”, Victor Huang adds
Chart One – Annual Growth in Managed Accounts (Funds under Management)
from June 2017 to $205.58 bn in June 2024
Chart Two - Managed Accounts FUM growth annually ($ billions)
by Category from June 2019 to June 2024
SMAS Managed DIscrectioney (MDA) Other
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.
“Consistent with the goal of being a good corporate industry in supporting advisers and their clients we encourage all market participants to voluntarily take part in the 6 monthly census “ explains Toby Potter – IMAP Chair
IMAP wishes to expressly thank all contributors to the Managed Account FUM Census - a number of whom are listed below (by permission):
|
Accordius |
Implemented Portfolios |
|
APEX Group |
Insignia Financial |
|
BT Panorama |
Lifespan Financial Planning |
|
Cameron Harrison Private |
Macquarie |
|
Colonial FIrst State |
North (AMP) |
|
DASH |
Mason Stevens |
|
DNR Capital |
MLC Asset Management |
|
EC Pohl & Co |
Netwealth |
|
Elston |
Park Street Group |
|
FiiG Securities |
Praemium |
|
Fortnum Private Wealth |
Shaw and Partners |
| HUB24 |
IMAP and Milliman - About & Contact Details
Contact Details
|
IMAP |
Milliman |
|
Toby Potter, Chair M: 0414 443 236
T: 02 8003 5077 |
Victor Huang, Practice Leader, Australia M: 0433 383 580 |
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/