The growth in managed account funds continues at a steady pace, with the latest IMAP/Milliman Managed Accounts FUM Census for the six months to 30 June 2018, showing funds under management (FUM) now standing at $62.43 billion – a 9 per cent or $5.39 billion increase on the previous six months.
And for the 12 months ‘year on year’ period, this represents an annual growth rate of 30 per cent or $14.46 billion.
Commenting on the findings, the Institute of Managed Account Professionals (IMAP) Chair, Toby Potter, said over half of the increase was the result of organic growth.
“We estimate that $2.99 billion of the increase was due to inflows of new funds from existing participants growing their managed accounts business, compared with $3.37 billion in the previous six month period,” Potter said.
He added that the total growth for the past 12 months from new fund inflows was $6.36 billion.
In addressing the results, Milliman (Australia) practice leader, Wade Matterson estimated that 45 per cent or $2.4 billion of the increase could be attributed to the steady growth in investment markets, with the value of the S&P/ASX 200 Accumulation index increasing by 4.23 per cent over the six month period.
“This compares with a 8.37 per cent or $4 billion market growth factor in the previous six months and reflects the total market conditions over that time period,” Matterson said.
A total of 43 companies participated in the June 2018 Managed Accounts FUM Census, ranging from the very large (major platforms and banks) and MDA providers, to individual licensees that mostly operate their service internally.
