Market headwinds in first half of 2022 met by positive inflows resulting in overall growth in Funds under Management in Managed Account services.
IMAP (The Institute of Managed Account Professionals Ltd) in conjunction with Milliman has released the latest data for balance date 30 June 2022 in its 6 monthly Managed Accounts FUM Census long term series.
In the 6 months to 30 June 2022 balance date, Funds Under Management (FUM) in Managed Accounts increased by $3.4 bn to reach a new high of $135.8 bn, up 22% compared to June 2021.
Toby Potter Chair of IMAP said, “The investment in client education by financial advisers and investment providers is clearly resulting in a greater focus on clients investing to achieve their longer term goals, and using the structured process that managed accounts provide.”
“There has been little sign of clients withdrawing funds when market fluctuations occur. Plus the efficiencies of managed accounts means that advisers have more time to focus on communicating with clients.” said Potter.
Investment markets encountered a turbulent period in the first half of 2022 with market sell-offs across both equities and fixed interest.
Victor Huang, Milliman’s Practice Leader, Australia advised that “A turbulent period in the investment markets delivered market sell-offs across both equities and fixed interest, with the value of the ASX / S&P 200 Accumulation Index falling -9.9% over the 6 month period (compared with a 3.8% increase in the prior 6 month period).
“Milliman is seeing an increased need for explicit risk management strategies to be used in this new regime of high inflation and low growth” said Huang
The FUM results split between types of managed accounts is as follows:
|
Managed Account Category |
30 June 2022 |
Incr / Decr ($ billions) June 2021 to June 2022 |
Incr / Decr |
30 Dec 2021 |
30 June 2021 |
|
SMA / MIS |
$70.56 |
$19.47 |
38% |
$68.19 |
$51.09 |
|
MDA services |
$50.64 |
$ 2.63 |
5% |
$52.76 |
$48.01 |
|
Other services |
$14.61 |
$ 2.70 |
22% |
$10.70 |
$11.91 |
|
Total |
$135.80 |
$24.80 |
22% |
$131.65 |
$111.01 |
“Participants from the managed account sector totaled 51 organisations. I thank all who participated for their efforts in responding at a time when there are many priorities and demands“, said Toby Potter. ”Some changes in categorisation by providers resulted in decrease in MDA and an increase in Other services ( which includes IDPS-like, trustee discretion and some wholesale managed accounts).
Participants range from the large platforms, and MDA service providers through to individual licensees.
Growth in Managed Accounts Funds under Management from 2015 to June 2022 ($ billions)
Category Type of Managed Accounts Chart showing FUM growth ($ billions) June 2017 to June 2022
IMAP wishes to expressly thank all census contributors - a number of whom are listed below (by permission):
|
Accordius |
HUB 24 |
|
AMP |
Implemented Portfolios |
|
BT Panorama |
Insignia (IOOF) |
|
Cameron Harrison Private |
Lifespan Financial Planning |
|
Clime Asset Management |
Macquarie |
|
DASH |
Mainstream Group |
|
DNR Capital |
Mason Stevens |
|
EC Pohl & Co |
MLC Asset Management |
|
Elston |
Netwealth |
|
FiiG Securities |
Praemium |
|
Fortnum Private Wealth |
About IMAP https://imap.asn.au
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 and was founded in 2003.
IMAP provides its subscribers, readers and supporters with:
- Access to information on the latest developments in managed account services
- Education, and training appropriate to professionals at all levels
- Representation as the voice of the managed account industry to represent its interests to regulators
- Networking opportunities for advisers and licensees interested or involved in managed accounts
About Milliman https://www.milliman.com/en
Milliman is among the world’s largest providers of actuarial, risk management, and related technology and data solutions. Our consulting and advanced analytics capabilities encompass healthcare, property and casualty insurance, life insurance and financial services, and employee benefits. With more than 4,600 employees and revenue of US$1.38 billion in 2021, the firm serves the full spectrum of business, financial, government, union, education, and nonprofit organizations. Founded in 1947, Milliman today has offices in principal cities worldwide, covering markets in North America, Latin America, Europe, Asia and the Pacific, the Middle East, and Africa. For further information about Milliman’s SmartShield™ Managed Account solutions visit https://advice.milliman.com/en/
Contact Details
Toby Potter, IMAP Chair
M: 0414 443 236
E: This email address is being protected from spambots. You need JavaScript enabled to view it.
Victor Huang, Practice Leader, Milliman Australia
T: 02 8090 9100
M: 0433 383 580
E: This email address is being protected from spambots. You need JavaScript enabled to view it.
Contact Details
© 2022 Reproduction Rights: This data is Copyright Institute of Managed Account Professionals Ltd (IMAP).
Use of this data in publications is subject to written permission from IMAP
