Managed accounts FUM growth defies upheaval

The managed accounts market has continued to grow despite the challenges created by financial adviser movements and exits and the volatility created by the COVID-19 pandemic, with funds under management (FUM) now standing at $111 billion.

That is the bottom line of the latest Institute of Managed Accounts Professionals (IMAP) carried out in conjunction with Milliman covering the six months to 30 June, this year.

The data produced by Milliman and IMAP confirmed that while there was a slowing in FUM growth in reaction to the start of the COVID-19 pandemic last year, it has seen on-trend growth since the beginning of 2021.

Commenting on the census result, IMAP chair, Toby Potter noted that the value of clients’ investments advised through Managed Accounts had increased by $80 billion.

He also noted that the Managed Account sector had been challenged by market conditions, regulatory reform, restructuring of the adviser market and continued consolidation through acquisitions, advisers moving between licensees, competition to justify fees and striving for consistent investment performance from investment managers.

“We can remain confident that the managed accounts advice and investment sector is contributing strongly to wealth management of Australians of all ages.”

Potter said “This is positive news and reassuring for investors especially considering the continued high levels of major change across multiple key areas and Covid disruptions.