Managed account FUM up $9bn in 6 months

The Institute of Managed Account Professionals’ (IMAP) latest managed accounts FUM census, conducted in partnership with actuarial firm Milliman, found that the sector's FUM grew 18.9 per cent on the six months to 31 December 2017, up to $57.05 billion.

IMAP chair Toby Potter said much of this had come from organic growth.

“$1.7 billion of this increase has come from companies who have been added to the census, [but over] half of the increase is organic growth as advisers increasingly view managed account services as their preferred service model for a certain client segment,” he said.

“We estimate that $3.37 billion of the increase is due to inflows of new funds from existing participants growing their managed accounts business, compared with $4.4 billion in previous [six-month] period. Totalled for the past 12 months gives a figure of $7.88 billion new funds inflow for 2017.”

Milliman’s Australian practice leader, Wade Matterson, said 41 per cent of the increase ($4 billion) can be attributed to buoyant markets, noting that the value of the of the ASX/S&P 200 accumulation index rose 8.37 per cent during the six month period.

“This compares with a 1 per cent or $0.39 billion market growth factor in the previous six months,” he said.