SMAs pass $10bn FUM on Macquarie Wrap

Macquarie’s banking and financial services group announced that SMAs on the Macquarie Wrap platform have grown substantially in recent years, with the SMA FUM doubling from $5 billion in February 2021 to the $10 billion it sits at currently.

Michelle Weber, head of wealth product and technology for Macquarie’s banking and financial services group, said that SMAs are responsible for an increasing proportion of inflows into the Macquarie Wrap platform as advisers leverage the value these products provide to their clients and their business.

“As a flexible investment option, managed accounts provide advisers with increased efficiencies and transparent portfolios for their clients which is contributing to their ongoing popularity,” Ms Weber said.

“The structure of SMAs means that advisers and clients have increased visibility over the portfolio. By being able to view the underlying securities and account activity, advisers and clients can remain close to the investment decisions being made.”

She added that simplicity and transparency, as well as access to a range of asset classes, are key to this trend.

“We’ve seen increasing popularity in our fee efficient total portfolio offering, Consolidator II Engage, which has contributed over $1 billion in growth since November 2019,” Ms Weber said.

“SMAs through Engage provide our clients with access to a menu of SMAs, cash, term deposits, and insurance, offering simplicity and transparency.”

There are more than 370 SMA models across 62 investment managers on the Macquarie Wrap platform, which Macquarie said allows advisers to complement their own service proposition with the expertise of other investment managers.

“We’re committed to our continued expansion of the Macquarie Wrap managed accounts offering and focusing on providing advisers and clients with choice and access to the latest products,” Ms Weber said.

Macquarie recently added the new suite of Morningstar Medalist core portfolios to the Macquarie Wrap menu, becoming one of the first platforms in the Australian market to offer these portfolios.

Morningstar said that the portfolios are designed to provide advisers with access to highly rated managed funds and ETFs, helping them achieve their clients’ investment objectives.