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Managed Account FUM surpasses $130 billion

Yasmine Raso15 March 2022
Funds Management

The Institute of Managed Account Professionals Ltd (IMAP), in collaboration with Milliman, has released the latest edition of its semi-annual Managed Accounts Funds Under Management (FUM) Census, revealing FUM reached $131.7 billion as of 31 December 2021.

This represented an increase of $21.06 billion in the six months from the total of $111.01 billion at 30 June 2021.

“The growth rate in managed accounts is accelerating to the point where it is approaching 40% per year. This growth is up from approximately 30% p.a as recently as June 2021,” Toby Potter, IMAP Chair, said.

“The increased use of managed accounts – MDA and SMA – is a good thing not just for the value added in dollar terms, but because it is achieved through personal advice provided to clients.

“The value which the systematic approach of managed accounts embodies is even more critical in the worldwide crisis we are currently facing.”

IMAP’s data also showed separately-managed accounts (SMAs) and managed investment schemes (MISs) recorded the highest FUM in the year to 30 December 2021, with a 51 per cent increase to $68.2 billion.

Managed discretionary account (MDA) services also recorded a 32 per cent jump to end the year at $52.8 billion, while other services only grew by four per cent to finish at $10.7 billion.

“The investment markets grew steadily in the last half of 2021, with the value of the ASX / S&P 200 Accumulation Index experiencing a modest 3.8% over the period, compared with the 12.9% increase in the prior 6 months,” Victor Huang, Milliman’s Practice Leader, Australia, said.

Potter thanked the census participants, which included large platforms, banks, MDA providers and individual licensees, for their contributions and said it was a “good sign of a healthy market sector”.

“Excellent support for the Census from the managed account sector includes one new census participant, adding up to a total of 49 companies,” he said.

“I thank everyone for their efforts in responding to provide a reliable, informative sector data-set.”

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