News

IMAP / Milliman Latest Managed Account FUM Census as at 30 June 2018

 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
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Jane McIlroy, National Marketing & Events Manager
(P) 0411420180
(E)  
This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Millimans Contacts

Wade Matterson, Practice Leader

(P) 0410 443 630

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Winter 2018 Perspectives

The latest edition of IMAPs quarterly magazine "Perspectives" is now available in PDF format for you to download

Click here to download the Winter 2018 edition.  

winter2018cover

Please send your comments or inquiries to:

Toby Potter, Chair

P: 0414 443 236
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Jane McIlroy, National Marketing & Events Manager
P: 0411 420 180

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Autumn 2018 Perspectives

The latest edition of IMAPs quarterly magazine "Perspectives" is available in PDF format for you to download

Click here to download the Autumn 2018 edition.  

 

 

Please send your comments or inquiries to:

Toby Potter, Chair

P: 0414 443 236
E: This email address is being protected from spambots. You need JavaScript enabled to view it.


Jane McIlroy, National Marketing & Events Manager
P: 0411 420 180

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IMAP / Milliman Latest Managed Account FUM Census as at 31 December 2017

 

Managed Account Funds Continue to Grow Substantially 

IMAP (The Institute of Managed Account Professionals Ltd) in conjunction with Milliman a (global actuarial firm) has released the latest data in its 6 monthly Managed Accounts FUM Census series. 

As at 31 December 2017, FUM in Managed Accounts stood at $57.05 bn.

This balance represents a six month increase of $9.08 bn (or 18.9%) on the 30 June 2017 FUM total of $47.97 bn.

For the 12 months “year on year” period this represents an annual growth rate of 45% or $17.87 bn in FUM.
 

The split between types of managed accounts follows:

Managed

Account Category

31 Dec 2017

($ billions)

30 June 2017

($ billions)

Incr / Decr $

($ billions) Jun to Dec 2017

Incr / Decr %

($ billions)
Jun to Dec 2017

31 Dec 2016

($ billions)

SMA / MIS 

$17.04

$13.90

$3.14

22.59%

$12.36

MDA services

$25.47

$23.37

$2.10

8.09%

$16.72

Other services

$14.54

$10.70

$3.84

35.88%

$10.10

Total

$57.05

$47.97

$9.08

18.93%

$39.17

 

Toby Potter Chair of IMAP said “$1.7 billion of this increase has come from companies who have beenadded to the census, but the over half of the increase is organic growth as advisers increasingly view Managed Account services as their preferred service model for a certain client segment.”

Wade Matterson, Milliman’s Practice Leader – Australia, estimates 41% or $4 bn of the increase can be attributed to very buoyant investment markets with the value of the ASX / S&P 200 Accumulation Index increasing by 8.37% over the 6 months period. “This compares with a 1% or $0.39bn market growth factor in the previous 6 months” says Matterson

Mr. Potter says “We estimate that $3.37 bn of the increase is due to inflows of new funds from existing participants growing their Managed Accounts business, compared with $4.4bn in previous 6 months period. Totalled for the past 12 months gives a figure of $7.88 bn new funds inflow for 2017”

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).

Strategic Insight’s statistics shown a net inflow of funds in their Masterfunds, Platforms and Wraps Survey of 2.78% or $21.31 bn of FUM to $ 821.4 bn for the period June 2017 – December 2017 compared to managed accounts $7.77bn. “It’s directly relevant to compare managed accounts with the Platforms and Wraps Study as these are both principally vehicles by which advisers implement their recommendations” said Potter. “There is of course a very high degree of crossover – managed accounts operated on platforms - but it shows that in a market generally characterised by low growth, Managed Accounts are the most vibrant area.”

“Forty two 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

- Mason Stevens

- NAB

- Netwealth

- Praemium

- Ralton Asset Management / Copia Partners

 

CLICK HERE TO DOWNLOAD PDF VERSION;

IMAP Contacts

Toby Potter, Chair

(P) 0414 443 236
(E) This email address is being protected from spambots. You need JavaScript enabled to view it.


Jane McIlroy, National Marketing & Events Manager
(P) 0411420180
(E)  
This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

IMAP Managed Account Solutions Handbook 2018

Download IMAPs "Managed Account Solutions for advisers and their practices".  

For a free copy click here.

Managed Accounts give advisers the opportunity to manage clients' portfolios themselves or through using carefully selected investment managers. They are an infinitely more efficient and scalable way for advisers to build and support a wide number of portfolios.

The Handbook features:

Understanding the Managed Accounts Choices

Why Advisers are adopting Managed Accounts

Benefits for Licensees

How Managed Accounts Achieve better client outcomes

Combining Managed Accounts

Fees and Charges

The Importance of an effective communications plan

Migrating to a Managed Account program

Nov 2017 FPA Congress and IMAP's Managed Account Central Expo

IMAP is again participating in the FPA CONGRESS being held this year in Hobart, TAS on 22 - 24 November 2017 with the "Managed Accounts Central Expo"

Managed Accounts Central brings together a group  of important participants in the managed account industry to provide a great opportunity for financial advisers, dealer groups and other stakeholders to talk with service providers, view the latest offerings and discuss challenges, opportunities and learnings from implementing and growing managed accounts as part of the adviser solution mix.

Perspectives - September 2017

Spring Perspectives

There is tremendous growth in the consideration and use of managed accounts by advisers.  The latest edition of IMAP's Managed Account Perspectives provides a valuable set of articles from recent IMAP events

IMAP FUM Census Release June 2017

Managed Account Funds Grow Substantially - IMAP Releases Latest  FUM Census

IMAP has released the latest data in its 6 monthly Managed Accounts FUM Census.

As at 30 June 2017, FUM in Managed Accounts stood at $47.97 bn. This balance represents an increase of $8.88 bn (or 22.5%) on the 31 Dec 2016 FUM total of $39.17 bn and is made up as follows:

 

 

30 June 2017
(billions)

31 Dec 2016
(billions)

Incr/Decr $
(billions)

Incr/Decr %

SMA / MIS

$13.90

$12.36

$1.54

12.46%

MDA services

$23.36

$16.72

$6.64

39.71%

Other services

$10.70

$10.10

$0.60

5.94%

Total

$47.97

$39.17

$8.79

22.44%

Toby Potter Chair of IMAP said “$4.1 billion of this increase has come from companies who have been added to the census, but the over half of the increase is organic growth as advisers increasingly view Managed Account services as their preferred service model for a certain client segment.

This is a growth rate of approximately 25% p.a. and this is before several of the large platforms have begun to properly implement the managed account capability they are just now developing. Taking out the new participants from the MDA data gives annual growth rates of 25-30% for SMA and MDA.”

“Thirty seven companies participated in the latest Managed Accounts FUM Census ranging from the very large (major platforms and banks) and smaller MDA Providers.” said Potter. “With several organisations moving service offerings into the larger platforms, and new entrants, this continues to be a very dynamic market.”

“IMAP’s recent Portfolio Management conference highlighted the varied nature of the managed account services and business models able to be offered by advisers, even within a similar platform and this is clearly working well for those advisers and organisations that have embraced Managed Accounts”

Mr. Potter says “IMAP has analysed the increase in Funds under management for managed accounts using the S&P ASX 200 market movement index over the past 6 months of 1.0% as an indicator, and $0.39bn of the growth is likely the result of market movement.

This means that $4.4bn of the growth in FUM comes from existing participants growing their Managed Accounts business, compared with 2.5 bn in previous 6 month period.”

IMAP wishes to expressly thank all census contributors - a number of whom are listed below (by permission):

- BT Panorama

- Cameron Harrison Asset Management

- Colonial First State

- EC Pohl & Co 

- Elston

- Federation Alliance

- Finclear

- Implemented Portfolios

- Macquarie

- Netwealth

- Ralton Asset Management / Copia Partners

 

CLICK HERE TO DOWNLOAD PDF VERSION 

IMAP Contacts

Toby Potter, Chair

(P) 0414 443 236

(E) This email address is being protected from spambots. You need JavaScript enabled to view it.


Jane McIlroy, National Marketing & Events Manager
(P) 0411420180
(E)  
This email address is being protected from spambots. You need JavaScript enabled to view it.

MDA Providers Forum - Putting your best foot forward

The last forum for MDA providers covered the increasingly difficult professional indemnity (PI) renewals.

The sesion aimed to demonstrate a strong narrative to PI insurers to ensure they get the most advantageous terms. Being able to differentiate your operating model from high risk operations can make a significant impact on the PI terms available to you. With the ASIC MDA Class Order becoming effective 1 October 2017, insurers will be considering the potential for any significant changes to how these businesses will operate and whether there are consequences for PI insurance.

Key issues covered:

-          breach reporting obligations are triggered (caution: over volunteer v head in the sand)

-          systemic issues are evident

-          ASIC seeks rectification

Insurance considerations

-          new activities require a strong narrative

-          you need to take insurers on your managed accounts (IMA, SMA or MDA) journey

-          how well your risk is presented can make all the difference

-          the impact of any claim/incident history can be mitigated by improved risk management

 

Insight and expert commentary was provided by financial services legal specialist Cain Jackson of Wotton + Kearney and PI insurance specialists Mike Herron

Click here for a copy of the presentation

Perspectives - June 2017

Welcome to Managed Account Perspectives - IMAPs quarterly publication for managed account professionals.

 

 

 

 

 

CONTENTS WINTER 2017 

Chairman’s message

News

12 The path less travelled: Four industry professionals provide their thoughts on the three things that will drive the growth of managed accounts.

15 My perspective

17 Crystal clear: Crystal Wealth Partners may only have been operating for five years, but it's an advisory business with an impressive track record.
Jayson Forrest talks to John McIlroy about the business’ investment philosophy and its managed account solution for clients

21 Three options for LMDA arrangements: When it comes to replacing Limited MDA arrangements, advisory firrms have three key options to consider if they hope to satisfy the changing demands of investors and the regulator, says David Heather.

24 Operational Due Diligence3.0: Operational due diligence is a challenging undertaking for any business, including the obligations on dealer group portfolio managers. Christopher Addy explains the five-stage process that can enhance the ODD process within a business

28 Cranes, trains and property yields: As Charles Stodart explains, investors in Australian property have long been enamoured with the residential market, but away from the media focus, AREITs offer many of the same attractions and warrant a place in managed account portfolios.

30 Fundamental indexingFundamental indexing can be an attractive option to investors who seek to add a low cost passive exposure as a core element to their portfolio, writes David Bassanese. 

34 Events   From our Portfolio Management Conference in July to regular webinars, read up on what's going on in the Event space

 

 

About IMAP

The Institute of Managed Account Professionals (IMAP) was formed to act as the nexus in this increasingly important industry. Our aim is to bring together advisers, managers, platforms and other managed account service providers to help build a better industry.

 

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