Managed accounts FUM increases by 20.47% to $194.85b

A combination of factors, not least investment markets and support by platforms, has seen funds under management in managed accounts increase by 20.47% to $194.85 billion over the six months to 31 December.

The latest Institute of Managed Account Professions (IMAP) Census conducted in conjunction with Milliman has emphasised the degree to which managed accounts have become deeply embedded in the Australian financial services eco-system.

Explaining the Census findings, Milliman practice leader in Australia, Victor Huang pointed to investment markets having recorded improved growth in the second half of 2023 with a 7.6% increase in the value of the ASX/S&P 200 Accumulation Index, giving an annual growth rate of 12.11% in 2023.

As well, IMAP chair, Toby Potter said that the platform providers’ expansive use of separately managed accounts (SMAs) as a vehicle to service the adviser/licensee market had helped drive FUM growth.

Potter said managed discretionary accounts (MDAs) were also continuing to grow helped by the tailoring, efficient implementation, and operation of MDA programs.

He pointed out that the FUM Census collected data from 46 large and smaller organisations with varied offering.