IMAP Milliman Managed Account FUM Census Results as at 31 December 2019

Managed Accounts Grow $7.9 bn for last 6 months of 2019

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 31 December 2019 Funds Under Management (FUM) in Managed Accounts stood at $79.29 bn, an increase of $7.9 bn on the 30 June 2019 FUM total of $71.383 bn.

The Net Funds Inflow from 30 June 2019 to 31 Dec 2019 was $5.722 bn or 8% increase on total FUM.

Toby Potter Chair of IMAP said “The FUM census results suggest that investors are working closely with and have confidence in their financial advisers, evidenced by the steady inflows of new funds into Managed Account arrangements.

Victor Huang, Milliman's Head of Capital Markets – Australia, advised that “The main features of investment markets for the second half of 2019 were growth and continued volatility. The value of the ASX / S&P 200 Accumulation Index increased by 3.06% over the 6 months period, compared with the large 19.73% increase in the Accumulation Index for the 6 months prior.”

The FUM results split between types of managed accounts is as follows:

Managed

Account Category

31 Dec 2019

($ billions)

Incr / Decr $ bn
June 2019
to Dec 2019

Incr / Decr %
June 2019 to
Dec 2019

30 June 2019

($ billions)

31 Dec 2018

($ billions)

           

SMA / MIS 

$29.32

            $3.76 

14.7%

$25.56

$21.15

MDA services

$31.14

$1.90

6.5%

$29.24

$26.52

Other services

$18.83

$2.25

13.6%

$16.58

$14.45

 

 

 

 

 

 

Total

$79.29

$7.91

11.1%

$71.38

$62.12

“A continuing trend from the last FUM census as at June 2019 is that Platform based SMAs are growing at a faster rate and closing in on the MDA total. The MDA category remains the largest and continue to grow as evidenced by a 6.5% increase in 6 months.” said Potter. “Managed account growth continues to outstrip growth in platform FUA which suggests that most growth is coming from advisers recommending managed accounts to existing clients.”

Thirty eight companies which issue managed accounts participated in the latest Managed Accounts FUM Census. Organisations which act as portfolio managers for example on SMA platforms are included through the SMA issuer. 

There were changes again in this reporting period with a reduction of 1 entity who has stopped offering MDA services.

“Participants include the very large major platforms, banks, and MDA Providers as well as individual licensees.

We strongly encourage all organisations offering Managed Account services (especially MDA’s) to participate in IMAP’s Census, and to engage with IMAP.” said Toby Potter.

 

Download the PDF for the Press Release here

 

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

- DNR Capital

- EC Pohl & Co 

- Elston

- Implemented Portfolios

- IOOF

- Macquarie

- Mainstream Group

- Mason Stevens

- Marcus Today

- MLC / NAB Asset Management

- Netwealth

- Praemium

- Ralton Asset Management / Copia Partners

- WealthO2

- Xplore Wealth

About IMAP

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.

IMAP provides its subscribers with:

·         Access to the latest developments in managed account services

·         Education, training and access to professionals at all levels

·         Representation as the voice of the managed account industry able to represent its interests to regulators

·         Networking opportunities for advisers and licensees interested or involved in managed accounts

About Milliman

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, visit https://www.milliman.com

Contact Details

Milliman

IMAP

 

Wade Matterson, Practice Leader

M: 0410 443 630

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Victor Huang, Head of Capital Markets

M: 0433 383 580

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Toby Potter, Chair

M: 0414 443 236

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Craig Dewhurst, IMAP Data Manager

T: 02 8003 5077

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