Managed accounts growing over 25%pa

Funds under management (FUM) for managed accounts in Australia now stand at $47.97 billion – an increase of $8.88 billion or 22.5 per cent in the six months from 31 December 2017. This was the latest result from IMAP’s 30 June 2017 Managed Accounts FUM Census.

According to IMAP chair, Toby Potter, $4.1 billion of this increase has come from five new respondents to the latest census survey, with over half of the increase attributed as organic growth as “advisers increasingly view managed account services as their preferred service model for a certain client segment”.

Managed accounts FUM

Managed accounts FUM
* Total amounts have been rounded out.

Potter said IMAP’s recent Portfolio Management conference highlighted the varied nature of managed account services and business models that are able to be offered by financial advisers, making managed accounts a “very dynamic market”.

IMAP analysed the increase in FUM for managed accounts using the S&P ASX 200 market movement index over the past six months of 1.0 per cent as an indicator, and $0.39 billion of the growth is likely the result of market movement.

“This means that $4.4 billion of the growth in FUM comes from existing participants growing their managed accounts business, compared with $2.5 billion in the previous six month period,” Potter said.

Thirty-seven companies participated in the latest Managed Accounts FUM Census, ranging from major platforms and banks, to smaller MDA providers.

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