Managed account FUM up 27%

Funds under management (FUM) in managed accounts now stand at $39.2 billion – a 27 per cent increase in the six months to 31 December, 2016.

Commenting on the findings of the ‘Managed Accounts FUM Census’, the chairman of the Institute of Managed Account Professionals (IMAP), Toby Potter, said the new total demonstrates just how significant managed accounts have become.

“Managed accounts, in all their various forms, now amount to the equivalent of over 5 per cent of the $733 billion of funds under advice on platforms and wraps,” Potter said.

Managed Discretionary Accounts (MDA) recorded growth of 64 per cent for the six month period to 31 December 2016, with a total of $16.72 billion in funds under management. This was followed by Separately Managed Accounts (SMA) at $12.36 billion – an increase of 40 per cent.

However, other types of managed account services recorded a 15 per cent decline to $10.1 billion, a drop of $1.76 billion on the previous six months.
Toby Potter
Toby Potter

Potter said the increase in FUM for managed accounts could be attributed to three primary sources: market movement in existing portfolios; additional participants compared to the June 2016 survey; and growth in the FUM for the providers who participated in both the June 2016 and December 2016 census.

A total of 35 companies participated in the December 2016 Managed Accounts FUM Census. However, Potter added there remained a number of “significant” providers that did not provide their managed account FUM data.

“Consequently, we know that the actual total will be greater than the number this survey has revealed,” Potter said. “This simply reinforces the increasing significance of this sector in the provision of personal advice.”

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