News

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

 

 

IMAP Webinar on Manager Due Dilligence featuring Chris Addy, Castle Hall

"Manager Due Dilligence - making sure the next van Eyk Blueprint isnt in your Group's Portfolios"
 
At this IMAP webinar sponsored by OneVue, Chris Addy, CEO and founder of Castle Hall, a leading company involved in Manager Due Diligence presented on Operational Due Diligence – A vital role in Managed Account Portfolio Construction
  • What DD should Portfolio Managers be undertaking?
  • What should be covered in a DD review?
  • How do Australian managers stack up?
  • How to integrate DD into a portfolio construction

 

Click here to download the slides Chris used in his presentation 

 

A video from the webinar will be available next week and can be reached on the following link http://www.imap.asn.au/video-library

 

9 May 2017

MDA Providers Forum launch

MDA Providers Forum inaugural meeting

How do investment bankers value wealth management businesses? 

This forum provided an excellent opportunity for AFSLs who have MDA Operator authorisations and will focus on the potential for this type of service

We all want our businesses to be more valuable so that when we finally realise the value we’ve created, it’s a bigger rather than a smaller number.
 
MDA Providers in particular have made a choice that both they and their clients can benefit from a business that goes beyond advice into portfolio management. The multiples that wealth management businesses command demonstrate that, properly executed, this is a sound strategy:
 
·       What do you have to do in your business to make it more valuable?
·       When is listing a realistic option?
·       What would an acquirer be looking for if you were planning to sell to them?
 
Vaughan Webber is Director Equity Capital Markets at Bell Potter.  His specialty is the equity capital markets for small to mid capitalization listed companies and has extensive experience in IPOs and capital raising for financial services business. He will come along to talk about “How do Investment Bankers value Wealth Management Businesses”
 

 

 

Click here for a copy of the presentation

 

Contact

Toby Potter, Chair, 0414 443 236 This email address is being protected from spambots. You need JavaScript enabled to view it.

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

 

Media

Chris Hocking        0418 603 694          This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Substantial growth reported in latest FUM Census

Press Release

 

The Institute of Managed Account Professionals Ltd (IMAP) has released the latest data in its Managed Accounts FUM Census. As at 31 December 2016, FUM in Managed Accounts stood at $39.2bn. This balance represents an increase of $8.3bn on the 30 June 2016 FUM total of $30.1bn

 

The 31 December 2016 total was made up as follows:

 

31 Dec 2016

30 June 2016

Incr/Decr $

Incr/Decr %

SMA / MIS

$12.36

$8.80

$3.56

40%

MDA services

$16.72

$10.22

$6.50

64%

Other services

$10.10

$11.86

-$1.76

-15%

Total

$39.17

$30.87

$8.30

27%

 

Commenting on the release, Toby Potter Chair of IMAP said “This new total shows just how significant managed accounts in their various forms have become. They now amount to the equivalent of nearly 7% of the Platforms and Wraps total FUA of around $600bn.”   

 

Thirty five companies participated in the latest Managed Accounts FUM Census ranging in size from the largest (the major platforms and banks) to MDA providers who offer their services just to their own clients. “It’s a sign of a very dynamic market that such a varied array of organisations can offer quite unique services and business models” said Potter.

 

The increase in the measured FUM for managed accounts can be attributed to three primary sources

  • market movement in existing portfolios;

  • additional participants compared to the June 2016 study and growth in FUM for the providers who participated in both June and December 2016;

  • new participants contributed $2.35bn in FUM

 

Market movement in the S&P ASX 200 accounted for $2.5bn of the growth with $2.5bn being new growth.

 

“There remain a number of managed account providers who have not yet provided their FUM data. Consequently we expect that the actual total will be greater than the number this survey has revealed” said Potter. “This simply reinforces the increasing significance of this sector in the provision of personal advice.”

 

 

Contact

Toby Potter, Chair, 0414 443 236 This email address is being protected from spambots. You need JavaScript enabled to view it.

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

 

Media

Chris Hocking        0418 603 694          This email address is being protected from spambots. You need JavaScript enabled to view it.

 

IMAP announces MDA Providers forum

Press Release


 

"A community of interest that needs to be represented"

 

The Institute of Managed Account Professionals (IMAP) has announced that it will be establishing a sub group to address the interests of MDA Providers as part of its broader representation of Managed Accounts.


IMAP’s FUM study in June 2016 showed that the MDA services exceeded $10bn and the initial results of an update as at 31 December 2016 shows this is likely to have grown significantly. Increasingly platforms are having to adapt to support this way of implementing advice service

“MDA Providers - or Operators as they used to be known – are governed by different regulation to organisations offering managed accounts via a Product Disclosure Statement and tend to have more diversity in their business models.  MDA Providers have expressed enthusiasm for a forum that would support their common interests such as complying with the new MDA regulations, ensuring ASIC understands their business models and encouraging wider understanding among advisers of the potential for MDA services” said Toby Potter, Chair of IMAP. “In addition, many MDA Providers would benefit by sharing experiences in operating their businesses by being able to chat with other business leaders who face similar challenges. Other topics which we intend to cover include how to engage with investment managers as sub advisers and the benefits platforms and brokers can offer MDA Providers.”

“The overall goal of the MDA Forum is to ensure that clients’ interests are best served”, he said.

The MDA Providers’ Forum will be an invitation only group available to leaders of businesses which have this AFSL authorisation. It will meet in Sydney and Melbourne initially up to 6 times a year but may extend to other centres following establishment. The group will have a speaker on a relevant topic followed by drinks and will commence in March with a Sydney meeting.

To develop the MDA Providers Forum IMAP has formed a Leadership Group consisting of the principals from a number of licensees who have the MDA authorisation. This group includes

·       David Heather - Managed Accounts

·       Richard Nicholas – Peak Investment Partners

·       Nick Revis – Elston Asset Management

·       Brett Sanders – Philo Capital

·       Glenn Woolley – Intrinsic Investment Management

Contact

Toby Potter, Chair, 0414 443 236 This email address is being protected from spambots. You need JavaScript enabled to view it.

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

Media

Chris Hocking 0418 603 694 This email address is being protected from spambots. You need JavaScript enabled to view it.  

IMAP announces new FUM census

Press Release

 
IMAP announces new Managed Account FUM Census- 23 January 2017
 
"Good information is the basis of good decision making"
 
The Institute of Managed Account Professionals (IMAP) has announced that it will be undertaking a new study of the FUM invested through Managed Accounts.
 
"When we did the last study as at 30 June 2016, I think many people were surprised that over $31 billion was managed in this way. We are undertaking the next FUM Census as at 31 December 2016 and plan to undertake the study twice yearly." said Toby Potter, Chair of IMAP.

“I am confident that we will see, even in this six monthly period, a significant increase in the assets held in Managed Account services. The current level of FUM and the growth, if it eventuates, will prove how significant this service is for the advice profession.”

“In the study last year we showed that Managed Accounts were offered in a number of ways – about 1/3rd Managed Discretionary Accounts,  about 1/3rd SMAs / managed investment schemes, and the balance in a variety of other legal structures such as IDPS-Like or IDPS services. Recent product launches have been principally in the SMA style so it will be interesting to see how the relative usage has evolved.”

IMAP will be completing the FUM Census through February for release in March. Potter said “In the last study we were thorough in our coverage of institutions and companies which offered Managed Account services to IFAs. In this study, we are extending the survey to the 190 licensees whose AFSL authorizes them to be an MDA Provider in their own right. Their participation will be a valuable extension of the study.”

To better meet the needs of MDA Providers, IMAP is also creating an MDA Providers Forum which will provide these organisations an opportunity to have a collective voice in matters such as regulation, professional indemnity insurance, investment management, and development of adviser expertise. The mandate for the MDA Providers’ Forum is currently being developed by IMAP with a group of MDA Providers and invitations to participate are expected to be released in February.

 

Contact

Toby Potter, Chair, 0414 443 236 This email address is being protected from spambots. You need JavaScript enabled to view it.

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

Media

Chris Hocking 0418 603 694 This email address is being protected from spambots. You need JavaScript enabled to view it.  

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