Steady Growth in Managed Account Funds - IMAP Releases Latest FUM Census
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 series.
As at 30 June 2018, FUM in Managed Accounts stood at $62.43 bn.
This balance represents a six month increase of $5.389bn (or 9%) on the 31 December 2017 FUM total of $57.05 bn.
For the 12 months “year on year” period this represents an annual growth rate of 31% or $14.85 bn in FUM.
The growth in FUM results split between types of managed accounts is as follows:
|
Managed Account Category |
30 Jun 2018 ($ billions) |
31 Dec 2017 ($ billions) |
Incr / Decr $ ($ billions) Dec 2017 to Jun 2018 |
Incr / Decr % Dec 2017 to Jun 2018 |
30 Jun 2017 ($ billions) |
|
SMA / MIS |
$20.55 |
$17.04 |
$3.51 |
21% |
$13.90 |
|
MDA services |
$27.34 |
$25.47 |
$1.87 |
7% |
$23.37 |
|
Other services |
$14.54 |
$14.54 |
$0.00 |
0% |
$10.70 |
|
Total |
$62.43 |
$57.05 |
$5.38 |
9% |
$47.97 |
Toby Potter Chair of IMAP said “Over half of the increase is the result of organic growth. We estimate that $2.99 bn of the increase is due to inflows of new funds from existing participants growing their Managed Accounts business, compared with $3.37 bn in previous 6 month period.
The total growth for the past 12 months from new funds inflow is $6.36 bn for 2017/2018 (this excludes the market growth)."
Wade Matterson, Milliman’s Practice Leader – Australia, estimates 45% or $2.4 bn of the increase can be attributed to steady growth in investment markets with the value of the ASX / S&P 200 Accumulation Index increasing by 4.23% over the 6 month period.
“This compares with a 8.37% or $4 bn market growth factor in the previous 6 months and reflects the total market conditions over that time period” says Matterson.
To compare the growth rate of managed accounts with other financial services in the retail market, IMAP compared it with the Master fund data over the same period (provided to IMAP courtesy of Strategic Insight www.strategic-i.com.au).
Strategic Insight’s statistics from their Masterfunds, Platforms and Wraps Survey at 31 March 2018 show Masterfunds with $809.3bn of FUM from annual net inflows of $20.6bn in the previous 12 months.
The 6 month net flows to 31 March 2018 were $6.5bn. The Strategic Insight statistics to 30 June 2018 for comparative purposes are expected to be published shortly.
“Forty three companies participated in the latest Managed Accounts FUM Census ranging from the very large (major platforms and banks) and MDA Providers to individual licensees who largely operate their service internally,” said Potter.
IMAP wishes to expressly thank all census contributors - a number of whom are listed below (by permission):
- Accordius
- AMP
- BT Panorama
- Cameron Harrison Private
- Colonial First State
- EC Pohl & Co
- Elston
- Implemented Portfolios
- IOOF
- Macquarie
- Mainstream Group
- Mason Stevens
- Marcus Today
- NAB
- Netwealth
- Praemium
- Ralton Asset Management / Copia Partners
CLICK HERE TO DOWNLOAD PDF VERSION;
IMAP Contacts
Toby Potter, Chair
(P) 0414 443 236
(E) toby.potter@imap.asn.au
Jane McIlroy, National Marketing & Events Manager
(P) 0411420180
(E) jane.mcilroy@imap.asn.au
Millimans Contacts
Wade Matterson, Practice Leader
(P) 0410 443 630
(E) wade.matterson@milliman.com